3.
In case of open or restricted bidding (hereinafter referred to as bidding throughout this Article), the ordinary local public body shall, as provided by cabinet order, shall enter into a contract with the highest or lowest bidder above or below the predetermined floor or ceiling price, as the case may be. However, as for such contracts as may put the ordinary local public body under a promise of expenditure, award may be given as provided by cabinet order to other than the lowest bidder.
4.
If the successful bidder fail to enter into the contract where bidders are required to furnish a bond, his/her bond (or security furnished in lieu thereof under cabinet order) shall fall to the ordinary local public body.
5.
When the ordinary local public body is to make out a written contract, such contract will not be consummated until both the chief executive or his/her assignee and the contractor affix their names and seals thereon.
6.
The qualifications for bidders, the method of advertisement of bidding or designation of qualified bidders, the procedures of contract by negotiation and public auction and other necessary matters related to conclusion of contracts shall be fixed by cabinet order.
(Inspection)
Article 234-2.
When the ordinary local public body has entered into a contract for construction or manufacture, etc. or a contract for purchase, etc., necessary surveillance or inspection shall be made as provided by cabinet order to secure the proper fulfilment of such contract or to acknowledge the complete fulfilment thereof (or partial fulfilment of construction or manufacture or of transfer of goods, if partial payment is necessary before complete fulfilment).
2.
If the contractor who has furnished a bond, fail to fulfil his/her contractual obligations, his/her bond (or security furnished in lieu thereof under cabinet order) shall fall to the ordinary local public body, unless indemnity or penalty is agreed upon in the contract, in which case such special provisions shall prevail.
(Long-term Contract)
Article 234-3.
For the procurement of power, gas, or water supply, or telecommunication service, or for the lease of real property, an ordinary local public body may, notwithstanding the provisions of Article 214, enter into a contract extending into subsequent fiscal years. However, such procurement shall not exceed the limit of expenditures set forth in the budget for each fiscal year.
