Deepen the understanding of the joint venture bidding, strengthen weaknesses and prevent risks

Release time:

2018-04-28

With the further refinement of the social division of labor, the further improvement of the degree of economic globalization, the complexity of the bidding projects and the continuous expansion of the scale of government procurement, especially the expansion of the scale of the government procurement projects, the demands of the tenderers to the bidder's strength, professional standards and service ability have been continuously improved. It is common to form consortium and participate in government procurement tendering under the name of consortium.
The so-called "consortium bidding" refers to the behavior that two or more legal persons or other organizations form a consortium and jointly bid as a bidder.
First, the advantages of the Union
1. The use of consortium bids can make up for the resource and technical gap of the bidding enterprise, and it is beneficial to the bidder to participate in some unqualified or lack of competitive advantages, that is to say, the joint body can participate in the project bidding without the participation of the other parties so long as one party meets the specific conditions. The competitiveness of enterprises has dispersed and reduced the operational risks of enterprises.
2. According to the division of division of the Consortium Agreement, the consortium will undertake the work according to the license scope of the class of qualification. It can improve the performance of the winning bidder, and can effectively prevent the winning bidder from the interests of the purchaser because of the poor performance of the contract and the procrastination of the performance.
3, the project which uses the consortium bidding is usually a mass project with large scale, so that a few suppliers can easily form a monopoly in the government procurement project, and make up the form of the consortium through the suppliers, moderately disperse the business opportunities, make more enterprises benefit, and realize the support for small and medium-sized enterprises in the intangible.
4. The use of consortium bidding is beneficial to the tenderer to use bids, reduce the manual amount of tenders and simplify the process of signing the tenderers. There is no need to subdivide the demands of the tenders in the process of bidding, and there is no need to determine the interface and interface of the various parts, so as to save the cost of the tenderers.
Two. The shortcoming of the Federation
1. When the Federation bid, because of the profit of capital, the parties of the Federation all want to ensure the maximum profit of their own part, then the final offer of the Federation will lose the competitive advantage and the probability of winning the bid will be greatly reduced.
2. The aptitude and specialty of the consortium are different. It is unavoidable to have friction in the process of contract performance. When the interfaces and interfaces of each part are not clear, the disputes will come into being.
3. When disputes arise between the parties of the Federation, the tenderer needs to be coordinated, leading to the time and effort of the tenders, becoming an endless coordination in the course of the performance, and whether the success of the coordination will directly affect the economic interests of the tenderers.
4. When the joint body is bidding, the joint body is liable to be punished at the same time when it is not standardized and illegal. The joint body is liable to be punished by the members of the Federation, and the members of the Federation are required to undertake the "liability joint" of the administrative penalty. Although the section is controversial, it often appears in the actual case.
Therefore, as the construction unit, we should correctly recognize the characteristics of the consortium bidding, deepen the understanding of the consortium bidding, avoid the risk, and make use of the form of the consortium bidding. Once the consortium is chosen, it is necessary to conscientiously do a good job of regulating the standard of the members of the Federation and supervising the members of the Federation; carefully formulating the joint tendering agreement of the parties of the United States, clearly defining the work and responsibility to be undertaken by the parties; formulating the project management measures and operating plans for the winning bid; and making clear the rights and obligations of the parties to the Federation, Internal and external liability for breach of contract or tort and its sharing. (Gong Jianhua)

Remember the 2018 Qingming Festival for the heroes

Group Jin Shun Branch organized management training.

Recommended news

2026-09-09

Good News Abounds | The Group Has Secured Multiple Emerging Industry Projects in Succession

In the golden autumn season, bountiful harvests abound, and new‑generation growth sectors showcase their strength. Since August, leveraging its deep-rooted expertise and core competencies in industrial installation, the Group has successively won bids for five key projects in emerging productivity fields, with a total contract value exceeding RMB 250 million, injecting robust momentum into its resilient year‑end performance.

2026-09-03

Two QC achievements of the Group have been awarded at the National Engineering Construction Quality Management Achievement Competition.

Recently, the China Construction Industry Association announced the results of the 2026 Engineering Construction Quality Management Team Achievement Competition. Two QC projects submitted by the Group—“Improving the First-Pass Acceptance Rate for One-Time Forming of Exterior Concrete Moldings” and “Enhancing the First-Pass Welding Acceptance Rate for Dissimilar Steels”—were awarded second and third prizes, respectively.

2026-09-01

The Group convened a special meeting to study and implement the spirit of the branch‑company representatives’ symposium.

On the afternoon of August 31, the Group convened a meeting of heads of regional companies and departmental offices in the fourth-floor conference room at its headquarters to deliberate on the implementation of the spirit of the symposium for branch‑office representatives held by the Group on August 30.

2026-08-31

Overcoming Difficulties Together, Pursuing Development Together | The Group Company Held a Symposium with Representatives of Branch Company Leaders

United in purpose, united in action, united in our dreams—sharing responsibilities, advancing together, and forging a common future. On the afternoon of August 30, the Group convened a symposium for representatives of branch‑office leaders in the fourth‑floor conference hall of its headquarters, aiming to build a shared vision for development that unites all levels in overcoming challenges. The meeting was chaired by Zhang Jian, General Manager of the Group.

2026-08-29

Two employees from the group have advanced to the finals of the National Construction Industry Project Manager Skills Competition.

On August 28, the second National Construction Industry Project Manager Skills Competition concluded successfully in Xi’an, Shaanxi Province.

2026-08-28

Xiang Xianggao, General Manager of China Construction Installation Group, and his delegation paid a visit to our group for inspection and exchange.

On the afternoon of August 27, Xiang Xianggao, General Manager of China Construction Installation Group Co., Ltd., and his delegation paid a visit to our group for an inspection and exchange. The group’s leaders—Yin Weidong, Zhang Jian, Lu Fei, Song Hongliang, Cai Ting, and others—extended a warm welcome.