Legal Problems Concerning Bid Bond in Government Procurement

Abstract

In this study of legal problems concerning bid bond in government procurement agency, the objective is to study in detail  1) problems of the legal status of the bid bond,  2) problems of bringing a lawsuit over posting a bid bond,  3) problems of kinds of contract in the bidding contest and problems of types of contract winning the bid  4) problems of creating a contract.

This study has shown that by posting the contest to present a bid, this is in essence an invitation to interested contractors to present a bid.  The contest to bid is, therefore, an offer. When a contractor presents a bid or enters into the process of electronic bidding, including depositing a sum to guarantee the bid or to guarantee an electronic bid, that is acceptance of the offer creating a contract, a bidding contract, or a contract to enter into a bidding process.  Posting a bid bond, therefore, has the legal status of a contract.  In the case that the winner of the bid fails to create a contract, the government agency that posts the bidding can rightfully confiscate the bond guaranteeing the bid, which is an exercise of its right in a bidding contract,  The litigation that arises in revocation of the bond for the procurement bid, therefore, is a litigation over an administrative contract.  In the case that a government agency does not return the guarantee of the bidding to a contestant or a guarantor of a bid whose obligations have elapsed within a given period of time, this is deemed dereliction of a duty prescribed by law, which is a dispute over a tort on the part of an administrative body or a government agent Through studying the decisions of administrative courts and of the committees determining final jurisdiction of the courts, That a bidding contract accords with the principal contract. The following suggestions: 1) Applying the legal contract to this situation, it is evident that the legal status of posting a guarantee of a bid is a contract by status,  2) If the winner of the bid this breaches the contract to bid or to guarantee the bid, The government agent may rightly confiscate the bid bond from the bidder or the guarantor. Additionally, the government can demand other damages. 3) If the government agency does not return the guarantee of the bidding to a contestant or a guarantor  of a bid whose obligations have elapsed within a given  period  of  time  the rules of the Ministry of Finance on procurement and processing of goods.  If a government agency fails to comply with these rules, it is deemed a dereliction of duty prescribed by law.  4) The order to confiscate the  bid bond is deemed an exercise of legal right in contract, and can be litigated in a lawsuit without an appeal.