2017.4.10
Luke Hung
The Public Construction Commission of the Executive Yuan issued the Gong-Cheng-Qi-10600069010 Circular of April 10, 2017 (hereinafter, the “Circular”) to communicate that a procuring agency conducting the acceptance inspection of its procurement should heed the authenticity of relevant documents. If a third party affixes his/her signature in another person’s name as the representative of the contractor, such contractor shall be published in the Government Gazette and excluded from future contract, and investigation should be conducted to ascertain if there is any license borrowing or illegal subcontracting.
According to the Circular, the signature and seal fields for a contractor’s attending personnel in the acceptance inspection form include those for representatives (optional) and dedicated engineers (not required for a non-construction contractor) and should be affixed with signatures and seals reflecting their roles to clarify their responsibilities without any false signature. With respect to the acceptance inspection of a construction project, if a third party gives a signature to a contract in another person’s name as the representative of the contractor, this matter should be handled in accordance with Article 101, Paragraph 1, Subparagraph 4 of the Government Procurement Law (by announcing no further contract will be awarded to such contractor in the Government Gazette). In addition, whether an individual case involves borrowing of any business license or illegal subcontracting should be investigated in order to determine if the contractor is subject to the requirement under the Government Procurement Law to be posted in the Government Gazette as a contractor to which no further contract will be awarded in the future.
In addition, the Circular pointed out that Point 71 of the Model Template of Tender Instructions has additionally required that portions of a contract which shall be performed by a bid-winning supplier pursuant to other laws and regulations shall not be performed by another supplier on its behalf. To ensure that a bid-winning supplier of a construction procurement project has overall management capability, if the bid-winning supplier for a construction project under Article 3, Subparagraph 1 of the Construction Industry Law is a construction contractor, the major portions of a contract for a contract under Point 71, Paragraph 2 of the above Model Template of Tender Instructions, including the director of the job site, the responsible person of the job site, dedicated engineers and security and sanitation personnel, shall be individuals hired by the contractor. If an individual case involves penalties under the Construction Industry Law, the competent authority for such law should be notified to handle such case.