Operational Guidelines for Budget Performance Evaluation Business Entrustment Contract Management (Policy Forwarding)

Annex 1

Operational Guidelines for Entrusted Contract Management of Budget Performance Evaluation Business (Trial)

Chapter I: General Provisions

         Article 1 In order to standardize the management of entrusted contracts for budget performance evaluation, in accordance with the Civil Code of the People's Republic of China, the Budget Law of the People's Republic of China and its implementing regulations, the Government Procurement Law of the People's Republic of China and its implementing regulations, the Administrative Measures for Government Procurement of Services (Decree No. 102 of the Ministry of Finance), the Administrative Measures for the Performance Evaluation of Project Expenditure (Cai Pre [2020] No. 10), and the Guiding Opinions of the Ministry of Finance on Entrusting Third-Party Institutions to Participate in Budget Performance Management (Cai Pre [2021]) No. 6), the "Interim Measures for the Supervision and Administration of Budget Performance Evaluation of Third-Party Institutions" (Cai Jian [2021] No. 4) and other relevant provisions, combined with the actual work, these guidelines are formulated.

         Article 2 These guidelines apply to the financial department and the budget department (hereinafter referred to as the entrusting party) to entrust a third-party institution (hereinafter referred to as the entrusted party) to carry out the whole process management of the conclusion, performance, modification, termination and other contract-related matters related to the budget performance evaluation business by way of discretionary entrustment. Where the above-mentioned entrusted acts are within the scope of government procurement, they are to be implemented in accordance with the relevant provisions on government procurement.

         Article 3 The term "budget performance evaluation business entrustment contract" (hereinafter referred to as the contract) mentioned in these guidelines refers to the agreement concluded between the entrusting party and the entrusted party, and the entrusted party provides budget performance evaluation services for the entrusting party.

        Article 4 The following principles shall be followed by the management of the whole process of the contract：

        （一)The principle of equality and voluntariness. The parties to the contract shall enter into the contract in the form of equal consultation, reach an agreement on the establishment, modification, termination of the entrustment relationship, etc., and shall be responsible for the true will freely expressed by each party.

        （二)Principles of legal compliance. Both parties to the contract shall act strictly in accordance with the law in all aspects of the conclusion, performance, modification and termination of the contract, and shall not violate the provisions of relevant laws and regulations.

        （三)The principle of clarity of rights and responsibilities. Both parties to the contract shall strictly limit the scope of their respective responsibilities and rights and obligations, the entrusting party shall be primarily responsible for the legality and compliance of the entrusted matters, and the entrusted party shall maintain independence in the evaluation of budget performance and be primarily responsible for the authenticity and accuracy of the evaluation.

        （四)The principle of good faith. The two parties to the contract shall cooperate in an open and transparent manner, the entrusting party shall establish a good sense of credit, strengthen the management of performance, and the entrusted party shall abide by the basic norms of professional ethics and maintain honesty, objectivity and fairness in the process of carrying out budget performance evaluation business.

Chapter II Content of the Contract

          Article 5 The content of the contract shall include, but is not limited to, the following clauses：

         （一）Information about the parties to the contract；

         （二）Name of the delegated matter；

         （三）Details of the consignment；

         （四）Job Requirements:；

         （五）Rights and obligations of the parties to the contract；

         （六）Performance acceptance；

         （七）Contract price and method of payment；

         （八）Modification and Termination of Contract；

         （九）Liability for breach of contract and dispute resolution；

         （十）Archives management. Article 6 The relevant information of both parties to the contract generally includes the name, address, contact person, contact information, bank and account number of the unit.

          Article 7: The name of the entrusted matter generally includes the evaluation period, the evaluation business matters, etc.

          Article 8 The contract shall specify the specific work content of the entrusted matters, including the evaluation object, evaluation scope, work procedures and work results.

          Article 9 The contract shall specify the specific work requirements for the entrusted party, including the entrusted party's staffing, completion time limit, quality requirements, work discipline, avoidance matters, confidentiality obligations, etc. The contract should specify the chief evaluator and stipulate that it should not be changed at will, and the members of the working group should be required to maintain relative stability. It should be agreed that the entrusted party shall implement a conflict of interest recusal system, clarify the circumstances and time limit for recusal, and ensure that the entrusted party is separated from the evaluation object. It should be made clear that the entrusted party has a duty of confidentiality with respect to the information and materials involved in the evaluation.

          Article 10 Both parties to the contract shall specify their respective rights and obligations in terms of staffing, training and guidance, coordination and cooperation, performance acceptance, quality control, fee collection and payment, file management, etc.

          Article 11 The acceptance of evaluation services shall adhere to the quality orientation, and the provisions on the acceptance requirements of evaluation services in the contract shall be clear and specific.

          Article 12 Both parties to the contract shall clearly specify in the contract the calculation method of the cost of the evaluation business, the overall price, the specific conditions and methods of payment, etc.

          Article 13 The contract shall clearly stipulate the specific circumstances, methods and procedures for the modification or termination of the contract.

          Article 14 The parties to the contract shall agree in the contract to carry out archives management in accordance with relevant provisions, and clarify the responsible subjects for archives management, the scope of archiving, the archiving method, and the retention period of archives.

          Article 15 The contract shall clearly stipulate the liability for breach of contract that the other party to the contract shall bear when it loses the ability to perform the contract, or violates the relevant laws and regulations of the state and the relevant terms of the contract, and stipulates the settlement method of the contract dispute. The liability for breach of contract shall be equal to the obligations of the other party to the contract and the losses caused, and shall be enforceable.

Chapter III Conclusion, Performance, Modification and Termination of Contracts

         Article 16 The contract shall be concluded in written form, and the parties to the contract shall conduct full consultation on the content of the contract, and carry out evaluation and demonstration and credit investigation when necessary, so as to ensure that the contract concluded is legal and compliant, and the rights and responsibilities are clear.

        Article 17 During the performance of the contract, the entrusting party shall perform the following responsibilities：

      （一)It should be clarified that the specific internal organization responsible for the conclusion, performance, modification, termination and other related matters of the contract；

      （二)Responsible for fulfilling the obligations of the department in the contract, actively communicating and coordinating with the 5 entrusted parties and relevant units, and promoting the effective performance of the contract；

      （三)Strengthen performance management, track and grasp the work progress, quality, standardization and other contract performance of the entrusted party, and promptly discover and prevent risks。

       Article 18 During the performance of the contract, the entrusted party shall perform the following responsibilities：

      （一)Responsible for fulfilling the obligations of the institution in the contract, actively communicating and coordinating with the entrusting party and relevant units, and promoting the effective performance of the contract；

      （二)Establish a responsibility system for the results of entrusted work to ensure that the results of performance evaluation are responsible and traceable. Take proactive measures to prevent and respond to contract performance risks。

       Article 19 During the performance of the contract, if it is necessary to change the substantive terms of the contract due to changes in objective circumstances, including the subject of contract performance, entrusted matters, performance period, contract price, etc., the contract may be changed in writing upon consensus between the parties to the contract. If it is necessary to increase the amount of services or service fees in the performance of the contract, a supplementary agreement shall be concluded after consultation between the two parties to the contract.

        Article 20 The contract may be terminated by the agreement of both parties to the contract or when the circumstances of statutory termination occur. In the event of any of the following circumstances, which may affect the normal performance of the contract, both parties to the contract may terminate the contract in writing：

      （一）The evaluation tasks determined by the entrustment contract are cancelled；

      （二）Loss of performance due to a change in the staffing of the entrusted party；

      （三）There is a material breach or anticipatory default by one of the parties to the contract；

      （四)Force majeure and other circumstances that make it impossible to perform the contract normally. Before terminating the contract, the client should first conduct a risk assessment. If the decision to terminate the contract is made after risk assessment, the entrusting party shall issue a written notice of termination of the contract to the entrusted party and resolve the relevant matters related to the termination of the contract through negotiation. If liability for breach of contract is involved, it shall be handled in accordance with the relevant laws and regulations and the contract.

Chapter IV: Quality Control and Accountability

        Article 21 The entrusting party shall carry out quality control according to the content and standards agreed in the contract, and the entrusted party shall actively cooperate. The entrusting party must not improperly interfere with the evaluation business carried out by the entrusted party in accordance with laws and regulations during the quality control process.

        Article 22 The entrusting party shall link the quality of the evaluation work of the entrusted party with the payment of expenses, so as to strengthen the incentives and constraints on the entrusted party, and the specific linkage method shall be agreed in the contract price and payment method.

        Article 23: Where relevant units and individuals engage in fraud, issuance of false reports, malicious collusion, or other acts that cause major adverse impacts in the process of concluding, performing, modifying, or terminating contracts, they shall be held accountable in accordance with relevant laws, regulations, and contract agreements.

        Article 24 Where public employees of financial departments and budget departments at all levels have dereliction of duty, twisting the law for personal gain, or abusing their powers in the management of the whole process of the contract, they shall be held accountable in accordance with the relevant provisions of the State; where a crime is constituted, criminal responsibility is pursued in accordance with law.

Chapter V: Supplementary Provisions

        Article 25 These guidelines shall be interpreted by the Supervision and Evaluation Bureau and the Budget Department of the Ministry of Finance.

        Article 26: These Guidelines shall come into force on the date of issuance.