Procurement Law in Bangladesh — The 2025 Playbook for Buyers, Bidders & Boards by TRW Law Firm

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Featured snippet (quick answer)

Public procurement in Bangladesh is governed by the Public Procurement Act, 2006 (PPA) and the Public Procurement Rules, 2008 (PPR), administered through the national e-GP platform (electronic Government Procurement). For most public bodies, the default method is Open Tendering (OTM), with alternatives (Limited Tendering, Direct Procurement, Request for Quotation, Two-Stage) allowed in defined circumstances. The typical life-cycle is: planning → tender preparation → e-GP publication → bid submission & opening → evaluation & approval → Notice of Award → contract signing & performance security → contract management & payments → completion & audit, with a complaint route to the Review Panel. Recent updates include revised e-GP Guidelines (2025) and notices referencing a Public Procurement (Amendment) Ordinance, 2025. (Bangladesh Laws, cptu.gov.bd)

Why this guide — and why TRW

TRW is Bangladesh’s largest cross-border law firm, advising ministries, SOEs, multilaterals, and private bidders on tenders, bid challenges, contract administration, and disputes. With integrated Dhaka–Dubai–London–U.S. teams, we align local PPA/PPR procedure with development partner rules, sanctions/export-control hygiene, and modern e-procurement practice so your tenders are defensible, auditable, and bankable.

1) The legal backbone (what applies to whom)

• PPA 2006 (primary legislation) sets mandatory principles: transparency, competition, value for money, fairness, and accountability; establishes offences and debarment powers. (Bangladesh Laws)
• PPR 2008 (subordinate legislation) operationalizes procedures: methods of procurement, thresholds/approvals, evaluation, award, and contract management (including variations and performance). (cptu.gov.bd)
• Institutional home: the central regulator historically known as CPTU (under IMED) now appears as Bangladesh Public Procurement Authority (BPPA) on official pages and hosts e-GP Guidelines (Revised 2025), training, and Review Panel notices. (cptu.gov.bd)

Scope check: PPA/PPR apply to public procuring entities (ministries, divisions, agencies, SOEs using public funds). Private companies are not bound by PPA/PPR, but many mirror its procedures to satisfy lenders and auditors.

2) Procurement methods — choose the right lane

Open Tendering Method (OTM)
Default, competitive bidding with public notice on e-GP. Use this unless a rule-based exception applies. (cptu.gov.bd)

Limited Tendering
For specialized or urgent needs where inviting all is impractical; selection of a shortlist must follow rule conditions.

Request for Quotation (RFQ)
Used for small, off-the-shelf procurements with standard specifications; strict value and risk limits apply.

Direct Procurement (DPM)
Permitted in narrowly defined cases (e.g., emergencies, proprietary items, single source). Expect heightened justification and approvals.

Two-Stage / Two-Envelope
Used where technical solutions need refinement before final pricing (complex works/IT). The first stage seeks technical proposals; the second takes priced offers from technically responsive bidders.

Framework & repeat orders
The rules allow certain repeat/variation mechanisms subject to caps and approvals embedded in the PPR. (Always tie these back to your original tender scope and audit trail.) (cptu.gov.bd)

3) The 10-step e-GP procedure (works, goods, services)

Step 1 — Planning & approvals

• Insert procurement packages into the Annual Procurement Plan (APP).
• Confirm budget, approvals, and development-partner alignment (if applicable).
• Form the Tender Opening Committee (TOC) and Tender Evaluation Committee (TEC). (cptu.gov.bd)

Step 2 — Tender strategy & documents

• Choose method (OTM by default).
• Prepare tender documents (using Standard Tender Documents/RFPs), Tender Data Sheet (TDS), and qualification criteria consistent with PPR.

Step 3 — e-GP setup

• Register procuring entity and tenderers on the e-GP portal; set timelines and ensure fee/payment settings are correct per the e-GP Guidelines (2025). (cptu.gov.bd)

Step 4 — Publication & clarifications

• Publish on e-GP; issue addenda online only; run pre-tender meetings if complex. Maintain an electronic audit trail.

Step 5 — e-Submission & opening

• Bidders submit encrypted bids before deadline; system holds them sealed.
• On closing, the electronic opening creates a tamper-evident record accessible to participants. (cptu.gov.bd)

Step 6 — Evaluation

• TEC evaluates for responsiveness, qualification, and price per the TDS; conducts post-qualification checks.
• Clarifications are requested in writing via e-GP only—no negotiation unless permitted by rules (e.g., minor arithmetic corrections). (cptu.gov.bd)

Step 7 — Approval & Notice of Award (NOA)

• The Approving Authority records reasons and authorizes award.
• Issue NOA through e-GP; publish results per transparency requirements.

Step 8 — Performance security & contract

• The winning bidder furnishes performance security; contract is signed within the rule-specified period, using the STD form. (cptu.gov.bd)

Step 9 — Contract administration

• Kick-off meeting, program, insurances, and guarantees.
• Manage variations and extensions strictly within PPR rules and approval limits; record site instructions, quality tests, and payment certificates in the contract file.

Step 10 — Completion & audit

• Takeover/Completion Certificate; defect-liability management; final account; archive the full e-GP dossier for audit/PPMR reporting.

4) How evaluation really works (and why bids fail)

• Responsiveness first: Missing forms, unsigned schedules, or failure to meet a mandatory requirement = rejection without price opening.
• Qualification next: Even the lowest price loses if financial capacity, experience, or equipment commitments are not proven to the standard in the TDS.
• Arithmetic corrections: PPR prescribes error handling; corrected totals govern if acceptance continues.
• Non-price factors: Past performance, delivery schedule, life-cycle cost, and technical scoring (for services/IT) must be pre-stated in the documents—no ex post facto criteria. (cptu.gov.bd)

Top five disqualifiers we see: late e-submission, tampered forms, inconsistent experience references, non-conforming bid security, and failure to meet a single “must”.

5) Complaints & review — the lawful way to challenge

• First stop: Complain to the procuring entity within the rule timeline, citing specific PPR breaches.
• Escalation: If unresolved, escalate to the Review Panel (hosted by BPPA/CPTU) through the channel indicated on the e-GP portal.
• Effect of complaint: Depending on stage, certain actions may be paused pending decision; remedies range from corrective action to re-tender in extreme cases.
  Recent notices reflect reformation of the Review Panel and ongoing policy updates published centrally. Keep your complaint precise and evidence-backed. (cptu.gov.bd)

6) Development-partner projects (World Bank, ADB, others)

Where a financier’s Procurement Regulations apply, they may override some PPR mechanics (e.g., international advertising, evaluation methods, prior review). Draft documents must cross-walk donor rules to PPR to avoid contradictions; approvals and publication still run through e-GP unless the donor requires a different portal. (Your tender must say which regime governs.)

7) Contract administration that survives audit

• Kick-off to closeout: Use an issues log; confirm Employer’s Representative; publish site instructions; keep a variation register with rule references and approvals.
• Quality & safety: Tie quality assurance plans, materials tests, and HSE controls to payment milestones.
• Time & money: Extensions/variations must meet PPR conditions and ceilings; contemporaneous records trump after-the-fact narratives.
• Payments: Ensure IPCs, delivery notes, acceptance certificates, and tax invoices match; e-GP/ERP entries must reconcile to bank statements.
• Supplier performance: Record non-conformance; issue cure notices; escalate to liquidated damages only per contract. Debarment is regulatory, not contractual—follow PPA rules if recommending debarment. (cptu.gov.bd)

8) Integrity & debarment (keeping your project clean)

• Conflict of interest & collusion: Mandatory declarations; violations can trigger rejection, contract termination, and debarment under the PPA.
• Gifts & hospitality: Adopt a zero-tolerance, pre-clearance policy for project teams.
• Sanctions screening: On donor-funded projects, screen against financier debarment lists and national lists.
• Whistleblowing & logs: Use a dedicated channel; preserve email/server logs—investigations hinge on digital evidence. (Bangladesh Laws)

9) e-GP in practice — bidder and buyer playbooks

For procuring entities (buyers):

• Calendar discipline: APP first; don’t publish before approvals.
• One source of truth: All addenda, clarifications, and openings must go through e-GP—no parallel email chains.
• TEC hygiene: Record each member’s evaluation notes; avoid blanket “non-responsive” labels—cite the exact clause.
• Award file: Keep the NOA rationale, evaluation reports, standstill/notification proofs, and contract checklists together. (cptu.gov.bd)

For tenderers (bidders):

• Portal readiness: Test submissions early; upload limits and encryption can surprise first-timers.
• Bid structure: Mirror the tender checklist; label exhibits; avoid “see attached” without cross-reference.
• Qualification proofs: Bank lines, audited financials, equipment leases, and key-staff CVs must meet TDS specifics.
• Clarification etiquette: Ask questions in time, through the portal; never assume a “friendly” email counts.

10) Private-sector procurement (good practice to steal)

Even though PPA/PPR don’t bind private buyers, adopting PPR-style discipline improves price discovery and auditability: plan → competitive sourcing → written evaluation → approvals → clean contract. If you handle donor funds or listed-company money, this discipline becomes essential governance.

11) Fast answers (FAQ)

Is e-GP mandatory?
For central government and most public entities, tenders are conducted on e-GP unless a rule-based exception applies. The e-GP Guidelines (Revised 2025) govern portal processes, fees, and help-desk protocols. (cptu.gov.bd)

What’s the default method of procurement?
Open Tendering (OTM), with alternatives permitted only when PPR criteria are met and approvals recorded. (cptu.gov.bd)

How do I challenge an unfair award?
File a complaint first to the procuring entity, then escalate to the Review Panel via the process indicated on BPPA/CPTU notices and the e-GP portal. Be specific; attach evidence and clause references. (cptu.gov.bd)

Were there recent legal updates?
Yes—official pages show revised e-GP Guidelines (2025) and reference a Public Procurement (Amendment) Ordinance, 2025. Check current circulars before drafting your tender. (cptu.gov.bd)

12) The TRW 90-day upgrade plan (copy/paste)

Days 1–15

• Map all 2025–26 procurements to an APP with method, budget, and approvals.
• Create template packs: STDs/RFPs, evaluation forms, NOA, contract checklists.
• Train TOC/TEC on responsiveness vs. qualification and conflict-of-interest logs. (cptu.gov.bd)

Days 16–45

• Dry-run an e-GP tender: publication → clarification → opening → evaluation notes.
• Pre-agree variation/extension approval paths consistent with PPR.
• Build a complaint-handling SOP mapping Review Panel timelines and evidence folders. (cptu.gov.bd)

Days 46–90

• Launch two pilot procurements; perform after-action reviews.
• Implement a contract-management register (variations, EOT, payments, LDs, handover).
• Prepare an audit-ready archive (e-GP exports + correspondence + approvals).

13) Common failure points (and how we fix them)

• Publishing before approvals → cancellation risk. Fix with an approvals gate in APP workflow.
• Hidden criteria → challenge risk. Fix by keeping everything in the TDS and evaluation grid.
• Qualification “shortcuts” → audit findings. Fix by evidence-based post-qualification checklists.
• Off-portal communication → integrity concerns. Fix by enforcing e-GP-only clarifications and addenda. (cptu.gov.bd)
• Variation creep → value-for-money loss. Fix with PPR-compliant ceilings and contemporaneous approvals. (cptu.gov.bd)

14) Sector lenses

• Infrastructure & works: Pre-qualification and two-stage methods help align technical solutions before price. PPR-compliant variations and claims processes are critical for schedule risk. (cptu.gov.bd)
• IT & digital: Two-envelope or two-stage with demonstration/testing. Strong SLAs and acceptance tests in the STD are decisive.
• Health & pharma: Cold chain, quality assurance, and regulatory approvals; audit trails for batch/lot traceability.
• Utilities & energy: Safety and environmental compliance woven into evaluation and contract KPIs.

15) TRW’s procurement toolkit (what you actually get)

• Tender strategy & document drafting aligned to PPA/PPR and donor rules.
• e-GP execution support: publication, addenda, opening minutes, evaluation notes and approvals that stand up in review. (cptu.gov.bd)
• Bid-challenge and Review Panel representation with targeted remedies.
• Contract administration playbooks: variations, extensions, payments, LDs, and closeout files compliant with PPR. (cptu.gov.bd)
• Integrity & training: conflict-of-interest registers, anti-collusion briefings, and investigation support under PPA offences. (Bangladesh Laws)

Speak with TRW’s Public Procurement & Projects Team

Phones: +8801708000660 • +8801847220062 • +8801708080817
Emails: info@trfirm.com • info@trwbd.com • info@tahmidur.com
Offices: Dhaka — House 410, Road 29, Mohakhali DOHS • Dubai — Rolex Building, L-12 Sheikh Zayed Road

References

1. Public Procurement Act, 2006 (Bangladesh) — official text, Laws of Bangladesh (Ministry of Law). (Bangladesh Laws)
2. Public Procurement Rules, 2008 (and subsequent amendments) — official page, BPPA/CPTU (IMED). (cptu.gov.bd)
3. e-GP Guidelines (Revised), 2025 & policy notices — BPPA/CPTU official portal. (cptu.gov.bd)

Want this tailored to your upcoming tenders? We can deliver bid packs, evaluation grids, and a complaint-response playbook aligned to your sector, donor rules, and audit expectations.