Article 24
The award of contract under price negotiation by an entity referred to in the preceding Article shall be handled in accordance with one of the following methods:
1. Where the invitation documents have stated a fixed price or rate for the service fees, the contract shall be awarded according to the fixed price or rate.
2. Where the invitation documents have not stated a fixed price or rate for services fees, paragraph 2 of Article 53 and Article 54 of the Act shall apply to award of contract in excess of the government estimate or nullification of tenders.
The provision of Article 46 of the Act shall apply where the entity sets the government estimate mentioned in subparagraph 2 of the preceding paragraph. Where the tender price of a supplier participating in price negotiation is reasonable and within the budget amount, the entity may set the government estimate in accordance with the tender price, and award the contract at the tender price.
The invitation documents may state a fixed price or rate for the service fees on part of the service items.
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Article 29
An entity that entrusts a provider for technical services and that the method of a percentage to construction expense for service fees shall be adopted, shall determined the percentage not more than the percentage figures prescribed in Tables 1 through 4 as attached, according to the subject matter of the construction work, the service items and the degree of difficulty, and separately determined the percentage according to the range of construction expense, or determined the common discount rate. Where the percentage shall be determined more than the percentage figures prescribed in each Table due to technical services of special circumstances or hi-tech, the entity shall report with reasons to the heand of rhe entity or the personnel authorized by the head and obtain his or her prior approval.
The term “construction expense” referred to in the preceding paragraph means,the government estimate of construction contract approved by the entity or an amount recommended by an evaluation committee. This does not include the fees and costs on governmental permits, planning, designing, supervising, professional construction management fees, adjusting construction expense due to price index, business tax, land and right expenses, legal expenses, project management fees of the procuring entity, insurance, interest on items related to the contracting of the construction work by the contractor and other excluding items prescribed in the contact.
Where there is no government estimate or the amount recommended by an evaluation committee for a construction contract, the construction expense referred to The preceding paragraph 1 may be set at 90% of the budget, but the excluding fees or tax referred to in the The preceding paragraph shall be deducted.
In the event where the contract of construction referred to in paragraph 1 is amended, terminated or rescinded, during the performance of the construction contract, the service fees shall be adjusted by negotiation according to the circumstances.
Table 1:Recommended maximum percentage of the technical service fees to construction expense of building construction
Table 2:Recommended maximum percentage of the technical services fees to construction expense for non-building construction works
Table 3:Recommended maximum percentage of the technical services fees to construction expense for professional construction management (excluding supervision of work)
Table 4:Percentage of the technical services fees to construction expense for professional construction management (including supervision of work)
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