Full Process of Government Projects from Initiation to Bidding and Signing

Government investment projects follow a set of rigorous and standardized procedures to ensure the scientific, efficient, and compliant use of public funds. The full process can be divided into three core stages: decision-making and initiation, preparation and design, and procurement and bidding.

I. Decision-making and Initiation Stage: Solving “Why do it” and “Whether to do it”

The goal of this stage is to demonstrate the necessity and feasibility of the project construction from a macro perspective, and finally achieve the formal initiation of the project.

1. Project Proposal (Pre-feasibility Study)

   • Core Goal: Demonstrate the necessity of project construction and urge the project to “initiate”.
   • Main Content: Elaborate on the project background, necessity and significance of construction, proposed location and scale, preliminary construction plan, investment estimation and fund raising concept, preliminary analysis of social benefits, etc.
   • Key Results: Complete the compilation of the “Project Proposal” and submit it to the Development and Reform Commission for approval. The investment at this stage is an estimation, aiming to determine the project direction and scale level.

2. Feasibility Study

   • Core Goal: Systematically answer the questions of “Is it worth investing” and “How to implement”, and provide a key basis for investment decisions.
   • Main Content: Strictly follow the national requirements of “General Outline for Writing Feasibility Study Reports of Government Investment Projects” , and conduct in-depth demonstration from the dimensions of demand analysis, element guarantee, technical solutions, engineering feasibility, operation plan, financial rationality, environmental impact, social stability, and risk control.
   • Key Results: Complete the compilation of the “Feasibility Study Report”. The report needs to be approved by the Development and Reform Commission, and the Finance Department usually reviews the investment estimation.

3. Initiation Approval

   • Core Goal: The project obtains a “birth certificate” and is formally established.
   • Main Content: The Development and Reform Commission reviews the feasibility study report, focusing on evaluating the rationality of the construction plan and investment estimation.
   • Key Results: Issue the “Approval Document for Project Feasibility Study Report”. For projects with small total investment or those already included in relevant plans, the approval process can be appropriately simplified.

II. Preparation and Design Stage: Solving “How to do it” and “How much money to spend”

The goal of this stage is to concretize the approved macro plan into executable technical documents and cost basis, and strictly abide by the principle of investment control.

1. Preliminary Design

   • Core Goal: Concretize the plan in the feasibility study report, forming the overall design plan of the project and the core basis for investment control - budget estimate.
   • Main Content: Including design specifications, design drawings of various disciplines, list of main equipment and materials, and project budget estimate book.
   • Key Results: Complete the compilation of “Preliminary Design and Budget Estimate”. The preliminary design and budget estimate need to be submitted to the Development and Reform Commission for approval. The total investment of the preliminary design budget estimate shall not exceed 10% of the total investment estimation of the approved feasibility study report, otherwise the feasibility study needs to be re-submitted for approval.

2. Construction Drawing Design and Budget

   • Core Goal: Provide detailed drawings that can be directly used for construction, and compile accurate cost documents.
   • Main Content: Based on the preliminary design, draw detailed construction drawings. The construction drawings must be sent to a third-party drawing review agency for review and qualification. Subsequently, based on the approved construction drawings, compile the bill of quantities and construction drawing budget.
   • Key Results: Obtain the “Construction Drawing Review Qualification Certificate”, and complete the compilation and review of the “Construction Drawing Budget”. The construction drawing budget must be controlled within the approved preliminary design budget estimate.

III. Procurement and Bidding Stage: Solving “Who will do it” and “Under what conditions”

The goal of this stage is to select the project implementation unit through a fair, open, and impartial competition method, and clarify the rights and obligations of both parties.

1. Bidding Preparation

   • Core Goal: Complete all preparatory work before bidding.
   • Main Content: Determine the bidding method (public bidding is the main one), and compile complete bidding documents, including technical requirements, bidder qualifications, evaluation standards, main contract terms, etc.

2. Release Announcement and Sell Documents

   • Core Goal: Release information on legal platforms to attract potential bidders.
   • Main Content: Publish bidding announcements in media designated by the state (such as the Public Resource Trading Center website), and sell bidding documents. For projects that must be tendered by law, the period from the date the bidding documents are started to be issued to the deadline for bidders to submit bid documents shall not be less than 20 days at the shortest.

3. Bid Opening and Evaluation

   • Core Goal: Open bids publicly and select winning candidates based on merit.
   • Main Content: Open bids publicly at the time and place determined in the bidding documents. The bid evaluation committee formed in accordance with the law reviews according to the evaluation standards and methods announced in the bidding documents, and recommends winning candidates.

4. Bid Determination and Signing

   • Core Goal: Determine the winner and sign the contract.
   • Main Content: The tenderer determines the winner based on the written report of the bid evaluation committee and publicizes it. After the publicity is without objection, the “Letter of Acceptance” is issued to the winner. Both parties shall sign a written contract within 30 days from the date of issuance of the Letter of Acceptance, in accordance with the bidding documents and the winner’s bid documents.

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Stage	Core Link	Core Goal and Deliverables	Responsible/Leading Department	Core Control Points
Decision-making and Initiation	Project Proposal	Goal: Demonstrate necessity, urge initiation Results: “Project Proposal” and approval	Construction unit compilation, Development and Reform approval	Investment is estimation, core is “necessity”
	Feasibility Study	Goal: Demonstrate feasibility, provide basis for decision Results: “Feasibility Study Report” and approval	Construction unit compilation, Development and Reform approval (Finance review)	Systematic analysis, investment is estimation, core is “worth it or not”
	Initiation Approval	Goal: Project formally established Results: Feasibility study report approval document	Development and Reform Department	Approve construction plan and investment estimation
Preparation and Design	Preliminary Design	Goal: Concretize plan, determine budget estimate Results: “Preliminary Design and Budget Estimate” and approval	Construction unit (design unit) compilation, Development and Reform approval	Budget estimate shall not exceed 10% of feasibility study estimation
	Construction Drawing Design and Budget	Goal: Provide detailed construction drawings, determine budget Results: “Construction Drawing Review Qualification Certificate”, “Construction Drawing Budget”	Construction unit (design/cost unit)	Budget shall not exceed preliminary design budget estimate
Procurement and Bidding	Bidding Preparation	Goal: Complete bidding documents and preparatory work Results: Bidding documents	Construction unit/Bidding agent	Clarify technical requirements, evaluation standards and contract terms
	Release Announcement	Goal: Publicize information, attract bidders Results: Bidding announcement	Construction unit/Public Resource Trading Center	Announcement period to bid deadline not less than 20 days
	Bid Opening and Evaluation	Goal: Public review, recommend candidates Results: Evaluation report, winning candidate publicity	Evaluation Committee	Legal process, fair review, public results
	Bid Determination and Signing	Goal: Determine winner and sign contract Results: “Letter of Acceptance”, contract	Construction unit, winning unit	Sign contract within 30 days, strictly forbid evading bidding

Core principles running through the whole process:

• Investment Control Principle: “Estimation controls budget estimate, budget estimate controls budget, budget controls settlement”. This is the iron law of government project management, and any breakthrough requires strict approval procedures.
• Design Change Control: Design changes during the construction process require strict approval, and the total change amount is usually controlled within a specific proportion of the contract price (such as 10%) to ensure that the total investment does not get out of control.
• Compliance Principle: The entire process must strictly abide by laws and regulations such as “Government Investment Regulations”, “Bidding Law”, and “Government Procurement Law”.

Published at: Nov 17, 2025 · Modified at: Jan 14, 2026