To encourage and improve the quality of public construction, the Public Construction Commission (PCC) has announced that, in accordance with Article 33-5 of the Regulations for Bid Bond, Guarantee Bond and Other Guarantees and Point 9 of the Guidelines for the Public Construction Golden Quality Award, suppliers that receive the “Public Construction Golden Quality Award” are entitled, within the award’s validity period, to a reduction of up to 50% in bid bonds, performance bonds, and warranty bonds when participating in new government procurement tenders.
The PCC explained that under current regulations, such reductions can only be applied if explicitly specified in the tender documentation. To provide tangible rewards to award winners, the Model Instructions to Tenderers have been revised to include default provisions in Points 34, 41, and 49, granting Golden Quality Award winners the maximum 50% reduction in bid bonds, performance bonds, and warranty bonds amounts. This measure is expected to help ease the financial burden on outstanding suppliers.
The PCC further stated that, in addition to the above measures, other incentives include graded reductions in retention fees for assessment payments and bonus points during tender evaluations. These initiatives aim to encourage exemplary public construction suppliers to continue contributing to the nation’s infrastructure development.
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