Overview of process for contractor selection under different methods
Contractor selection is one of the most important and decisive steps during the implementation of investment projects, especially projects in which state capital or preferential loans are utilized. Correct selection of contractor would not only ensure the quality and project implementation progress but also contribute to the capital usage efficiency and mitigation of legal and financial risks.
Within the context of the increasingly complete legal system on bidding and stricter transparency and competitive requirements, employers and tenderers need to have a firm understanding of the contractor selection methods, the process correspond to each method, as well as preparations and factors to be considered throughout the selection. This article shall provide a systematic and comprehensive view of as well as update on the process for contractor selection under different methods with the aim to promote individuals, organizations, and enterprises’ compliance and investment efficiency.
Contractor selection methods
In investment activities, the determination of contractor selection methods is the first and foremost step that affect the efficiency, transparency, and compliance of the entire process. According to Article 20, Law on Investment 2023, contractor selection methods include:
Contractor selection methods
An appropriate method of contractor selection is based on not only the scale and nature of the package, but also the practical circumstances, technical requirements, and feasibility of implementation. To ensure the legality and efficiency of the bidding process, Employer should make careful considerations and maintain compliance with the laws.
See more on the bidding methods at: 9 popular bidding methods and their application in 2025 – CNC | CNC Vietnam Law Firm Co., Ltd
Preparations for the contractor selection
For the contractor selection process to take place in a smooth, transparent, and efficient manner, the Employer need to make the following preparations:
Preparations for the contractor selection
First, prior to the selection of contractor, the Employer need to define the scope of work, quality standard, expected budget, time for implementation, and the specific requirements of the project. A clear determination of these factors would help establish an accurate document that is appropriate to the circumstances and attractive to capable contractors.
Second, evaluation criteria are the tools for the comparison, analysis, and selection of contractor in an objective manner. These criteria need to fully reflect aspects such as financial capacity, experience with implementation of similar projects, technical solution, construction program, bidding price, and maintenance policy. The establishment of criteria ought to be consistent with the nature of the package and must be clearly conveyed in the tender document.
Third, tender document is the official document that describe the Employer’s requirements for the contractors. The document must include: invitation to tender, project information, technical requirements, evaluation criteria, bid proposal form, submission duration, expected contract terms and conditions. The transparency and completeness of the document is a decisive factor for the quality of the result brought forth by the tender document.
Fourth, for packages of large scale or technically complex in nature, the establishment of the Bidding Expert Team is necessary. The expert team consists of members who have expertise in technical, financial, or legal matters and responsible for the evaluation of the bid proposal based on the announced criteria. Professional evaluation would help ensure impartiality and enhance efficiency in contractor selection.
Process for contractor selection under different methods
Subsequent to the selection of appropriate method and preparation of the requisites, the next step is the implementation of the contractor selection process in accordance with the laws. In order to ensure he transparency, efficiency, and manageability throughout the process, Law on Bidding 2023 detailed the steps for each method of bidding.
For ease of follow and comparison, the below table summarize the main steps in the contractor selection process under different methods.
Overview of process for contractor selection under different methods
The above compilation provided an overview of the process of each contractor selection method. To further clarify on the contents and requirements of each phase, the section below shall provide the detailed analysis of the key steps in the contractor selection process, applicable to each popular method
Key milestones in the organization of contractor selection.
Pursuant to Article 45 of Law on Bidding 2023, the duration for the implementation of works in the bidding process are explicitly provided to ensure the transparency and progress of projects. Below is the compilation of the detailed duration for each phase in the contractor selection process:
| Works/Bidding Method | Scope/ Type of Package | Domestic Bidding (Minimum) | International Bidding (Minimum) | Note |
| Preparation of expression of interest and prequalification application | 09 days | 18 days | From the date on which the expression of interest request, prequalification documents are issued to the date on which bid submission deadline is available | |
| Preparation of bidding document
(Competitive Bidding, Limited Bidding) |
In general | 18 days | 35 days | From the date on which the tender documents are issued to the date on which bid submission deadline is available |
| Construction and mixed packages with value of 20 billion VND or less; Procurement, Non-consulting service packages with value of 500 million VND or less | 09 days | 18 days | ||
| Simple consulting service packages with value of 500 million VND or less/ emergency | 07 days | Not applicable | ||
| Preparation of tender document (Competitive bidding) | In general | 05 business days | Not applicable | From the date on which the tender documents are issued to the date of bid submission deadline |
| Preparation of tender document (Direct contracting in the context of competitive bidding) | Packages qualified for direct contracting under points a,b,c of Article 23.1 in the context where competitive bidding is applied | 09 days | Not applicable | From the date on which the tender documents are issued to the date of bid submission deadline |
| Adjustment to the tender documents | In general | 10 days prior to the bid submission deadline | Similar to domestic bidding | |
| Construction and mixed packages with value of 20 billion VND or less; Procurement, Non-consulting service packages with value of 500 million VND or less; Simple consulting service packages with value of 500 million VND or less/ emergency | 3 business days prior to the bid submission deadline | Similar to domestic bidding | ||
| Adjustment to the expression of interest request/ prequalification document | In general | 3 business days prior to the bid submission deadline | Similar to domestic bidding | |
| Issuance of the expression of interest request/ prequalification document/ tender document | In general | Concurrent with notice of expression of interest request/ prequalification/ tender | Concurrent with notice of expression of interest request/ prequalification/ tender | |
| Other works | Decided by competent person/ employer | Decided by competent person/ employer | Ensure the progress of the project and package |
Conclusion
Contractor selection is not merely an operational task but a strategic decision that directly influences the success of any project. Understanding the contractor selection process and adhering to proper preparation steps along with key considerations are essential for enterprises to optimize resources, minimize legal risks, and ensure the quality of works and services.
To support enterprises in this process, CNC provides specialized legal consulting services in bidding, helping clients ensure full compliance with legal regulations and avoid potential risks. With a team of highly experienced lawyers, we are committed to delivering optimal solutions that safeguard your lawful rights and interests at every stage of the contractor selection process
Managed by
 |
Ms. Nguyen Le Anh Thu | Legal Assyistant
Phone: (84) 28 6276-9900 Email: thu.nguyen@cnccounsel.com |
Contact
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CNC Vietnam Law Firm Co., Ltd
Address: The Sun Avenue, 28 Mai Chi Tho, Binh Trung Ward, Ho Chi Minh City, Vietnam
Phone: (84) 28-6276 9900
Hotline: (84) 916-545-618
Website: cnccounsel
