Regulations for Bid Bond, Guarantee Bond and Other Guarantees Article 33-5

An entity conducting procurement may prescribe in the tender documentation that, for outstanding suppliers, the amount of bid bond, performance bond or warranty bond to be deposited by such suppliers may be reduced. The maximum amount of reduction shall be limited to 50% of the total amount that has to be deposited originally. This provision shall not be retroactive to any supplier that attains the aforesaid status after depositing the bonds. Where the incentive period expired before the expiry of a bond, the reduced deposited amount needs not be deposited.The outstanding supplier referred in the preceding paragraph denotes any supplier who has been evaluated as outstanding, based on provisions regarding incentives measure, incentive period and contract performance results by the responsible entity or the relevant central competent authorities in target enterprises covered by laws and regulations responsible by the said entity or authorities, provided that such evaluation has been recognized and announced to the public via the designated database by the responsible entity, and that the incentive period is still valid. Since such evaluation has been completed, the evaluation results and relevant data shall be reported to the responsible entity within three months. If the incentive period commencing from the publishing date of the notice exceeds two years, it shall be deemed as two years. Where there is no incentive period, the status shall last for one year commencing from the publishing date of the notice on which the supplier is listed in the database as an outstanding supplier. An entity may prescribe applicable sectors for eligible outstanding suppliers in the tender documentation for a specific procurement.As regards the circumstances in which an amount may be reduced as referred to in paragraph 1, an entity shall prescribe in the tender documentation that, where there are circumstances in which a bid bond or guarantee bond shall not be released, the supplier shall make a supplemental deposit that equals the reduced portion of the unreleased amount. The same shall apply to a supplier whose outstanding supplier status has been revoked by the responsible entity or the relevant central competent authorities in target enterprises, or to a supplier who has been published by any entity on the Government Gazette pursuant to paragraph 3 of Article 102 of the Act, and is still under the effect of the period prescribed in paragraph 1 of Article 103 of the Act.For a supplier who has been evaluated as an outstanding supplier by a municipal or county (city) government, the provisions of paragraph 1, and the preceding paragraph may apply mutatis mutandis when such supplier participates in the procurement conducted by that particular government. Such outstanding suppliers shall neither be reported to the responsible entity, nor be announced to the public via the designated database by the responsible entity.Where the amount of bid bond, performance bond or warranty bond may be reduced pursuant to other laws, the laws do not stipulate that the incentives shall be specified in the tender documentation, or to be announced to the public via the designated database by the responsible entity, those laws shall apply.