Tender Authorization Letter Template for Hong Kong

A Tender Authorization Letter is a crucial legal document that formally grants designated individuals the authority to represent your company in competitive bidding processes throughout Hong Kong. This document establishes a clear principal-agent relationship, ensuring that your authorized representatives can legally bind your organization when submitting tenders, negotiating terms, and entering into preliminary agreements with tender issuing organizations.

When do you need this document?

You need a Tender Authorization Letter whenever your company participates in competitive procurement processes but cannot have senior executives directly handle the submissions. This commonly occurs when bidding for government contracts through the Government Logistics Department, participating in Housing Authority tenders, or responding to private sector RFPs from major corporations. The document is particularly essential when your authorized representative needs to attend tender briefings, submit clarifications, or sign preliminary agreements during the bidding process. Many tender issuing organizations require this authorization as part of their due diligence process to verify that bidders have proper internal authority structures.

Key legal considerations

Your Tender Authorization Letter must comply with Hong Kong's Powers of Attorney Ordinance (Cap. 31), which governs agency relationships and delegation of authority. The document should clearly define the scope of powers granted, including specific monetary limits and types of tenders covered by the authorization. You must ensure compliance with the Competition Ordinance (Cap. 619) by including clauses that prevent anti-competitive behavior and bid-rigging activities. The authorization should specify whether your representative can enter binding commitments or only submit bids subject to board approval. Consider including witness requirements and notarization clauses to strengthen the document's legal validity, particularly for high-value contracts where disputes may arise.

Legal requirements in Hong Kong

Under Hong Kong law, your Tender Authorization Letter must include specific elements to be legally enforceable. The document requires proper company letterhead, clear identification of both the principal company and authorized representatives, and precise definition of the authorization scope. You must specify the validity period of the authorization and include any monetary thresholds or project-specific limitations. The letter should be signed by authorized company directors or officers who have the legal capacity to grant such powers. If your company intends to use electronic submissions, ensure compliance with the Electronic Transactions Ordinance (Cap. 553) by including appropriate electronic signature provisions. The document must also address how third parties can rely on the authorization under the Contracts (Rights of Third Parties) Ordinance (Cap. 623), ensuring that tender issuing organizations can confidently engage with your authorized representatives.