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Chapter Law Content

Chapter 2 Selection and Price Negotiation
Article 11
Unless otherwise provided by laws and regulations, an entity that entrusts a provider for technical services may prescribe the following items, according to the nature and the practical need of each case, in the invitation documents:
1. Services required, content and demand of the work involved.
2. Technical staffs that shall be appointed by the provider, and the qualification and certification documents of such staffs or any other qualifications relevant to the provision of services.
3. The objectives and result that shall be achieved upon completing the services.
4. Where services involve the provision of materials, equipment or space, the specifications that must be defined by provider.
5. Proposal on the services that shall be provided by the provider and the contents thereof.
6. The provider or its major staff involved in the project shall possess experience for providing services equivalent or similar to that required by the tender.
7. The designated place and deadline for the submission of the proposal.
8. Items for evaluation, evaluation criteria and selection methods.
9. The ownership of the intellectual property right.
10. Methods of price negotiation and contract award with regard to the winning provider.
11. Methods for the calculation and payment of fees.
12. Points to note in tendering and contract terms.
13. Where the provider is required to present briefing during selection, the procedures that shall be followed.
14. Award of a fixed sum to the unsuccessful tenders and the handling procedures of their tenders design drawings or proposal.
15. Budget of entrusting service fees, estimated amount, fixed amount or percentage of service fees.
16. Any other necessary matters.
Where the provider is entrusted with a service that is referred to as a professional construction management under Article 9, at least half of the project personnel must be the full time staffs of such provider.
Article 12
The demand of the work referred to in subparagraph 1 of paragraph 1 of the preceding Article may include origin, demand description, current situation of construction site, geography data, upper limits of construction expense, predicted contract duration for technical services, etc.
Article 13
Issues regarding proposal and its content referred to in subparagraph 5 of paragraph 1 of Article 11 may include the following:
1. Plan summary and operation procedure.
2. Current situation of construction site and analysis of related laws.
3. Total work schedule and major working items schedule.
4. Service fees( where fixed price is adopted, describe the analysis of service fees)
5. Description of ideas and conceptions of planning and design, such as saving energy, reduction emission of greenhouse gases, environment protection, saving resources, economic durability, and consider landscape, natural biology, gender friendly environment, and life aesthetics, resident participation, and friendly environment for users of different genders,the disabled,the elders,the children,etc.
6. Presence of design drawings include scale, size, page numbers, framing specifications of the drawing, and so forth.
7. Materials in design and written materials for structures.
8. Required items for plans, reports and drawings in accordance with laws.
9. Preliminary estimate of construction expense and expense analysis of major work items.
10. Analysis for implementation plans.
11. Quality control plans includes technical services and major work items.
12. Content of service plans, drawings and written materials, and chapter order of the proposal, and so forth.
13. Personnel organization and academic, work experience, specialization of major participating personnel.
14. Reputation and performance records of the provider.
Where an entity entrusts a provider for technical services of construction supervision or professional construction management, the content referred to in subparagraphs 5 to 10 of the preceding paragraph may be excluded in the proposal.
Article 14
Issues regarding contracts terms referred to in subparagraph 12 of paragraph 1 of Article 11 may, consisting to the fair and rationale principles, include the following:
1. The official language used in the contract should be Chinese, and a translation in a foreign language may be attached. Where a conflict arises between the Chinese and the translated version of the contract, the Chinese shall prevail.
2. Contract terms shall be construed and applied in accordance with the applied law of Taiwan; where special circumstances exist, the agreed terms shall prevail.
3. Procedures on dispute settlement, including details such as the designated arbitration institution, the court of jurisdiction, and the governing law, if necessary.
4. Agreement in advance on tax liability, the taxpayer shall be the one prescribed by the laws of Taiwan as having to bear the tax liability.
5. The responsibility undertaken and the guarantee of service quality of the provider.
6. The premium required for the “professional liabilities insurance” to be effected by the provider shall be included in the services fees. The entity shall prescribe the scope, amount and period of the insurance, deductible limits of insurance policy, according to the characteristics of the services required.
7. Service items, contract period and calculating methods of service fees.
8. Progress of each period, calculating methods of progress, payment methods and amount.
9. Where the scope of services includes the training of operational and maintenance staffs on behalf of the entity, the service fess, shall not include fees relating to the travel and living expenses of the staffs undergoing training. The entity shall pay such expenses by itself.
10. The ownership of intellectual property right of the written documents and drawings designed by the entrusted provider.
11. The responsibilities applicable to losses incurred by the entity due to erroneous planning and design, irresponsible supervision or poor management.
12. The items of the entrusted project that shall be held in confidence by the provider and the penalties for the breach of confidentiality.
13. The plan on work supervision that must be submitted by the provider entrusted with work supervision.
14. The periodic report such as daily report, weekly report or monthly report, that must be submitted to the entity for evaluation according to the characteristics of work or agreed professional service items shall include the work schedule, number of staff employed for the job, number of working hours, the occurrence of any extraordinary situation and its analysis and reactionary means, and so forth.
15. Rules and upper limits of delay penalty on the determination and the handling procedure of project delays and other events of default.
16. Rules governing the termination, rescission and settlement of the contract.
The entity may, depending on the characteristic of individual procurement and actual needs, prescribe the items, scope and upper limits of compensation for losses referred to in subparagraph 11 of the preceding paragraph in the contract according to losses referred to in the preceding paragraph, and may prescribe the exclusion applicable to the contract.
Article 15
An entity that entrusts a provider for technical services shall state, in its invitation documents, the ownership of any intellectual property rights derived from the work or result of the technical services provided by the provider, and the legal obligation of the provider to handle and become responsible for matters that involve the infringement of rights of a third party.
The entity may be authorized to exercise such right or acquire the right referred to in the preceding paragraph, in part or in whole, according to the needs of the entity.
Article 16
An entity entrusts a provider for technical services, where all tendering providers are required to submit their design drawings or proposal on the services to be supplied, shall prescribe in its invitation documents the conditions to use other winning drawings and the scope and limit of authority of the entity, the invitation documents may also prescribe that an award of a fixed sum may be given to the unsuccessful tenders that has attained a certain score or rank.
The design drawings or proposal of unsuccessful tenders that has attained a certain score or rank referred to in the preceding paragraph, may be authorized to exercise such right or acquired the right, in part or in whole to the entity, according to the actual needs and reasonable payment.
Article 17
An entity that entrusts providers for feasibility study, planning, design or construction supervision, unless otherwise provided by laws and regulations, issues regarding the evaluation items may include the following:
1. The experience and reputation of the provider on areas related to technical service. It may include good or poor record, or achievement.
2. The completeness and feasibility of the proposal, and the level of understanding of the service items.
3. Work plan, the estimated schedule of the project and the capability to perform the contract with quality on time. It may include the major participating personnel, numbers, amount and delays (or not) for performing contract, and so forth.
4. The experience, ability, specialization and service record in recent 3 years of the project manager and major staff involved in the project, and the professional knowledge related to the Act of the major staff. It may include good or poor record, or achievement.
5. The resources and supporting capabilities of the provider.
6. Control methods for reasonable construction expense.
7. Statement of usage, maintenance, operation management when the construction accomplished.
8. Service fees and analysis of construction expense.
9. Statement of resident participation, landscape design, natural biology, saving energy, reduction emission of greenhouse gases, environment protection, saving resources, economic durability, gender friendly environment and life aesthetics, and friendly environment for users of different genders,the disabled,the elders,the children,etc.
10. Analysis of environmental influence and construction risks.
11. Adoption of outstanding techniques, construction methods and productions.
12. Award of equal or similar to the technical services in the past 5 years, and past performance records.
13. Any other necessary matters related to the technical services.
Where the evaluation referred to in the preceding paragraph includes drawings competition, issues regarding the evaluation items may include the following:
1. Design concepts.
2. Creative idea and consistence of local culture and life aesthetics in design.
3. Level of understanding of design to the demand of the entity.
The good or poor record, or achievement of the provider or project manager and major staff involved in the project referred to in subparagraphs 1 and 4 of paragraph 1, in addition to be offered by the provider, may be collect or searched on the website of responsible entity by the entity.
Article 18
An entity that entrusts providers for professional construction management, unless otherwise provided by laws and regulations, issues regarding the evaluation items may include the following:
1. The experience and reputation of the provider on areas related to professional construction management of technical service. It may include good or poor record, or achievement.
2. The completeness and feasibility of the proposal, and the level of understanding of the service items.
3. Work plan, the estimated schedule of the project and the capability to perform the contract with quality on time. It may include the major staff involved in the project, numbers, amount and delays (or not) for performing contract, and so forth.
4. The experience, ability, specialization and service record in recent 3 years of the project manager and major staff involved in the project, and the professional knowledge related to the Act of the major staff. It may include good or poor record, or achievement.
5. The resources and supporting capabilities of the provider.
6. Service fees.
7. Award of equal or similar to the technical services in the past 5 years, and past performance records.
8. Any other necessary matters related to the technical services.
The good or poor record, or achievement of the provider or project manager and major staff involved in the project referred to in subparagraphs 1 and 4 of the preceding paragraph, in addition to be offered by the provider, may be collect or searched on the website of responsible entity by the entity.
Article 19
An entity that entrusts providers for technical services relating to building shall, where the service fees exceed NT$ 5,000,000, and where the services include the planning and designing of the construction, require the service providers to submit written service proposal and the plan, concepts of design drawings such as allocation plans, plans, elevations, sections and perspectives, etc.; and shall hold a competition for such drawings.
Where the technical service involves the competition of design drawings, the invitation to tender documents shall, in addition to the requirement of Article 11, include the following items:
1. Objectives and principles of the plan.
2. Name and location of the project.
3. Information on the construction site, including the map copy for land ownership, city plan, topography or current state measuring picture, geography surveying data, potential flood or fault data and any other relevant information.
4. Content of the plan and the design, including the indoors or outdoors space usage, quantity, maximum capacity of users or size of the space, ways of usage, equipment required, special requirement and any other requirements.
5. Percentage allowed for increasing or decreasing the actual size of the project location.
6. Estimate on the construction expenses.
7. Construction deadline.
8. Illustration, scale, size, page numbers, framing specifications of the drawing, and so forth.
9. Methods used for expression, including models, transparency and colors requirement and so forth.
10. Any other necessary matters.
Where the service fees is less than NT$ 5,000,000, and where evaluation adopts drawings competition, shall apply mutatis mutandis to the preceding paragraph, but may not require construction models and colored perspectives.
Article 20
The entity may adopt one or two stage(s) evaluation for the competition of design drawings referred to in the preceding Article, and adopt in accordance with the following principles:
1. The first stage evaluation is limited to the planning and concepts content, and the second stage evaluation includes the actual design content.
2. Brief may be excluded in the first stage evaluation.
3. The tenderer that shall be evaluated qualified in first stage evaluation may attend the second stage evaluation.
4. The second stage evaluation may, in addition to drawings and written materials, include architectural models and colored perspectives.
Article 21
For the selection of providers by entity to entrust a provider for technical services, the entity shall first assess the qualification of the provider. Unless the qualification of the provider fulfills the requirements prescribed in the invitation documents, the evaluation process for the provider shall cease to proceed further.
The entity shall notify the provider of the result of its selection and shall state reasons of rejection to providers that have not been selected.
Article 22
The number of winning providers selected by the Procurement Evaluation Committee may be more than one.
The selection procedures referred to in the preceding paragraph shall apply mutatis mutandis to the relevant regulations for selection of the most advantageous tender of the Act.
Article 23
The price negotiation and contract award between the entity and the winning provider shall be conducted by one of the following methods, and the method adopted shall be stated in the invitation documents:
1. Where only one winning provider is selected, the case shall be handled by way of price negotiation.
2. Where two or more winning providers are selected, price negotiation shall be conducted in a sequence according to the ranking of the winning providers, commencing from the provider which attains the first ranking. In the event where two or more providers are of the same ranking, the provider with the lowest bid price shall have priority in the price negotiation.
The price negotiation referred to in the preceding paragraph shall not lower or derogate the request of tender documentation and the tender commitment of the provider.
Article 24
The award of contract under price negotiation by an entity referred to in the preceding Article shall be handled in accordance with one of the following methods:
1. Where the invitation documents have stated a fixed price or rate for the service fees, the contract shall be awarded according to the fixed price or rate.
2. Where the invitation documents have not stated a fixed price or rate for services fees, paragraph 2 of Article 53 and Article 54 of the Act shall apply to award of contract in excess of the government estimate or nullification of tenders.
The provision of Article 46 of the Act shall apply where the entity sets the government estimate mentioned in subparagraph 2 of the preceding paragraph. Where the tender price of a supplier participating in price negotiation is reasonable and within the budget amount, the entity may set the government estimate in accordance with the tender price, and award the contract at the tender price.
The invitation documents may state a fixed price or rate for the service fees on part of the service items.