Please explain the second paragraph of Article 9 of the Regulations for the Implementation of the Bidding Law.

Article 9 Except for the special circumstances stipulated in Article 66 of the Bidding Law, no bidding shall be conducted under any of the following circumstances:

(a) the need to adopt irreplaceable patents or proprietary technology;

(2) The purchaser may construct, produce or provide it by himself according to law;

This article has three main points:

1. Buyers refer to legal persons and other organizations that meet the qualifications of civil subjects, excluding their associated parent companies and subsidiaries, as well as legal persons and other organizations that have management or interest relations with them and have independent qualifications of civil subjects. Since bidding is not required to meet this requirement, the concept of "buyer" is used here instead of "bidder". For example, a hydropower group company is a shareholder of a hydropower project legal person. Although the hydropower group company has the corresponding qualification for hydropower station construction, the purchaser of hydropower project is an independent hydropower project legal person, and the project legal person cannot directly contract the project to the hydropower group company without bidding.

Second, the purchaser has the qualification and ability of engineering construction, goods production or service provision. Projects, goods and services that can be built, produced or provided by themselves can be used by the buyer or provided to others. For example, a real estate development company not only has the qualification of housing development, but also has the corresponding first-class qualification of general contracting of housing construction projects, so the commercial housing it develops can organize its own construction according to relevant laws, regulations and provisions without bidding.

Third, the buyer must not only have the qualification and ability to build, produce or provide by himself, but also meet the legal requirements. For the work items that cannot be undertaken by the purchaser at the same time according to laws and regulations, the purchaser shall still conduct bidding. For example, the main body that undertakes the management function of government investment projects, even if it has the construction qualification ability, cannot undertake the construction contract of government investment projects at the same time. For another example, according to the Regulations on Quality Management of Construction Projects and related regulations, if an engineering supervision unit has affiliation or other interests with the construction contractor, building materials, building components and equipment suppliers of the supervised project, it may not undertake the supervision business of construction projects. Therefore, if the purchaser provides the project supervision service by himself, it cannot contract the project construction and the supply of building materials, building components and equipment at the same time.

It should be noted that this provision does not apply to the tender of the temporary appraisal project stipulated in Article 29 of the Regulations, if the general contractor is the tenderer of the temporary appraisal project.

This interpretation is the interpretation of the Regulations for the Implementation of the Bidding Law of People's Republic of China (PRC).