construction law

1. Importance and necessity

• Construction industry is the pillar industry of China 's national econ-
omy.
• Laws and regulations in the field of construction engineering are es-
sential
Ensure project quality and safety
Standardize, supervise and protect the rights and interests of all parties
( construction units, survey and design units, construction units, supervi-
sion units, migrant workers, the people, etc. )
Standardize the normal operation of the construction market

• China 's construction industry must speed up the legislative process,

improve the legislative technology, improve the legal system, and
promote the healthy development of the building.
Chapter I Legal basis of
project construction
■ 1.1 Overview of engineering con-

struction laws

■ 1.2 Legal relations of engineering

construction

■ 1.3 Legal system of engineering

construction

■ 1.4 Relevant system of engineer-

ing construction
1.1Overview of engineering construction law

• 1.1.1 Concepts
• Construction law: refers to the general term of the laws and
regulations formulated by the organs of state power or the
administrative organs authorized by them for the purpose
of adjusting the various social relations between the state
and its related organs, enterprises and public institutions,
social organizations and citizens in the construction activi-
ties or in the construction administrative activities.
• In short, the construction law is the general term of the
regulation of construction activities or construction man-
agement activities.
1.1.2 Adjusting Objects

• The object of adjustment: that is, the construction relation, that is, the social re-
lation occurring in the construction management activities and various con-
struction activities 。

– Engineering construction management relationship : the organiza-

tion, supervision, coordination and other functional activities of the
relevant institutions formally authorized by the state organs ;
– engineering construction cooperation relationship : that is, the ex-
changes and cooperation between the equal subjects engaged in
engineering construction activities, such as the signing of engineer-
ing construction contracts between the contractor and the contrac-
tor ;
– the internal labor relations of the subjects engaged in engineering
construction activities : such as concluding labor contracts, stan-
dardizing labor discipline, etc.
 1.1.3 feature
• In addition to the general legal characteristics, the construction law also has
characteristics different from other laws.

– Administrative subordination : This is the main feature of construction law. This

feature determines that the construction law must adopt the adjustment method
that directly reflects the activities of administrative power, that is, the method of
adjusting the construction legal relationship based on administrative instructions.
Adjustment methods include : authorization, order, prohibition, permission, ex-
emption, confirmation, planning, revocation.
– Economy : Engineering construction law is an important part of economic law, is
another important feature.
– Policy : The legal norms of engineering construction reflect the national engineer-
ing construction policy. On the one hand, it is a tool to realize the national engi-
neering construction policy, on the other hand, it also standardizes the national
engineering construction policy.
– Technicality : Technicality is a very important feature of engineering construction
legal norms. A large number of construction regulations are in the form of tech-
nical specifications. Such as various technical specifications, construction specifi-
cations, acceptance specifications, product quality monitoring specifications, etc.
1.1.4 function

• Engineering construction industry is closely related to social

progress, national prosperity and national rise and fall.
• In the national economy, the engineering construction industry
is an important material production sector, the function of the
engineering construction law is to protect, consolidate and de-
velop the socialist economic foundation, to maximize the satis-
faction of people's growing material and cultural life needs, to
ensure the healthy and orderly development of the engineering
construction.
1.1.5 Basic principle

• (I) The principle of ensuring the quality and safety of project

construction activities
• (2) Project construction activities shall conform to the principles
of the State safety standards for project construction
• (3) Construction activities shall be conducted in compliance
with the principles of laws and regulations
• (4) The principle of not harming the public interest and the le-
gitimate rights and interests of others
• (5) The principle that legal rights are protected by law
1.2 Legal relation of construction project

1.2.1 concept
• Legal relationship: refers to the relationship between
rights and obligations formed by the adjustment of
certain social relations by legal norms.
• Legal relation of engineering construction: it is a kind
of legal relation, which refers to the relationship of
rights and obligations generated in the process of
construction management and construction cooper-
ation confirmed and adjusted by the legal norms of
engineering construction.
1.2.2 Constituent element

• Any legal relationship is composed of three elements: the subject of legal rela-
tionship, the object of legal relationship and the content of legal relationship.
Without one of the elements, legal relationship cannot be formed.
• Subject of legal relation of project construction refers to those who participate
in construction activities, are subject to the adjustment of the legal norms of
project construction, and enjoy rights and undertake obligations in law.
person: the same as the legal status of individual citizens, but broader than
the scope of citizens.
Legal person: two categories, four specific types
Other organizations: do not have the legal person status
• The object of legal relation of engineering construction refers to the things that
the subject of legal relation of engineering construction enjoys the right and
undertakes the obligation to point to together. Generally divided into: goods,
things, behavior and immaterial wealth.
• Content of legal relation of project construction: construction right and con-
struction obligation.
 1.3 Legal system of engineering construction

1.3.1 concept
• Legal system: Also known as the system of law, usu-
ally refers to a country's existing various departments
of law composed of organic unified whole.
• Building a legal system: it refers to connecting the
laws, administrative regulations and local regulations
on construction that have been formulated and need
to be formulated with the rules of construction de-
partments and local government, etc., so as to form a
unified system that is interrelated, complementary
and coordinated.
1.3.2 Form of law
 1. Constitution -- Formulated by the National People's Congress,
the Constitution has the highest effect

 2. Law -- second only to the Constitution

Basic laws -- Enacted by the NPC
General Principles of Civil Law, Contract Law, Criminal Law, Civil Proce-
dure Law
General Law -- NPC Standing Committee
Construction Law, Bidding Law, Production Safety Law, Arbitration Law
 3. Administrative regulations -- formulated by The State Council,
inferior to the Constitution and laws
"Regulations on Quality Control of Construction Projects", "Regula-
tions on Safe Production Administration of Construction Projects",
"Regulations on Safe Production Permit", "Regulations on Environ-
mental Protection Administration of Construction Projects"
• 4. Local regulations -- formulated by the People's congresses
and Standing committees of provinces, autonomous regions
and municipalities directly under the Central Government and
valid within their respective jurisdictions
Regulations of Beijing Municipality on the Administration of
Construction Market, Regulations of Tianjin Municipality on the
Administration of Construction Market
• 5. Departmental rules and regulations -- Ministries and com-
missions of the State Council: Ministry of Housing and Urban-
Rural Development, National Development and Reform
Commission, effective in this industry
Provisions on the Quality Supervision and Administration of
Housing Construction and Municipal Infrastructure Projects, In-
terim Measures for the Administration of the Record of the
Completion Acceptance of Housing Construction Projects and
Municipal Infrastructure Projects, Provisions on the Bidding
Scope and Scale Standards of Construction Projects
1.3.3 Level of effect of law

• 1. The Constitution is supreme

• 2. The upper method is better than the
lower method
• 3. Special method is better than general
method
• 4. The new law is superior to the old one
• 5. Special circumstances that need to be decided by the relevant
authorities
– Between local government rules and local regulations -- ac-
cording to local regulations
– The same organ, between the old and the new -- to enact
organ rulings
– Between departmental rules and local government rules -
decisions of The State Council
– Between local regulations and departmental rules -- Com-
ments of The State Council:
Applicable local regulations -- take effect
Application of departmental rules - Submit to the Standing
Committee of the National People's Congress for ruling
1.4 Related system of engineering construction

• 1.4.1 Construction project legal person system

– The General Principles of the Civil Law stipulate that a legal
person is an organization that has the capacity for civil rights
and civil conduct and independently enjoys civil rights and
undertakes civil obligations according to law.

– Conditions for a legal person to be established in

accordance with the law; Having the necessary property or
funds; Having its own name, organization and premises; Be
able to bear civil liability independently.

– Types of legal person ：

• Enterprise legal person
• Non-enterprise legal person: administrative legal person,
enterprise legal person, association legal person
– The legal relationship between the enterprise legal person and the
project management department
• The project management department does not have the legal person
qualification, but is a non-permanent subordinate organization
established by the construction enterprise according to the construction
project.
• The project manager of a construction enterprise is a project manager
who is appointed by the enterprise legal person and is fully responsible
for the construction project. It is a post within the construction
enterprise.
• Production and business activities in construction projects must be
operated under the constraints of the enterprise system; The quality,
safety, technology and other activities shall accept the guidance and
supervision of the relevant functional departments of the enterprise.
• The legal consequences of the acts of the project management
Department shall be borne by the enterprise legal person.
1.4.2 Agency system for construction projects

• 1. Agency: It refers to the legal system in which the

agent performs legal acts with a third party in the
name of the principal within the scope of agency
authority granted, and the consequences of the acts
shall be borne by the principal.
agent
The agency re-
lationship in- Principal agent
volves three
parties
agent
• 2. Legal characteristics of agency
– An agent must perform an agency act within the scope of agency authority;
– An agent shall perform an act of agency in the name of the principal;
– The act of agency must be the act of legal significance;
– The legal consequences of the agency act belong to the principal 。

• 3 、 The main types of agents

Agent ( oral, written )

agency by according to the principal
mandate 's entrustment.

Type of Agency ( ex officio ) arising

Legal agency from direct provision of law)
agent
Acquisition
of agency Appointed An agent appointed according
to law by a people 's court
agent or relevant authority.
• 4. Rights, obligations and legal responsibilities of agents
and principals
– The General Principles of the Civil Law provide that an agent shall, within his
power of agency, perform a civil juristic act in the name of the principal, and
the principal shall bear civil liability for the agent's act of agency.
– The General Principles of the Civil Law provide that if an entrusted agent
needs to be transferred to another person for the principal's benefit, the prin-
cipal's consent shall be obtained in advance.
– The General Principles of the Civil Law stipulate that the principal shall bear
civil liability only after the principal ratifies the act of not having the power of
agency, exceeding the power of agency or after the termination of the power
of agency. If an act is not ratified, the perpetrator shall bear civil liability. If a
person knows that another person is performing a civil act in his name and
does not deny it, he shall be deemed to have consen ted
\No agency: ① from the beginning without authorization ② be-
yond the agency ③ the agency has been terminated
\Apparent agency: (1) there must be sufficient facts or reasons to
convince the counterpart that the actor has the power of agency
(2) there must be a fault (3) must be relative good faith
Unknown authorization -- the principal shall bear civil liability to the third party, and the
agent shall bear joint liability
Ratification (default) -- acceptance of
Principal agent responsibility
Failure to ratify -- to assume no liability
Unauthorised agency

Call the actor Ignorance -- no responsibility

Third person
Informed - bear joint liability with powerless agent

Failure to perform -- accept responsibility

The agent did not

perform his duty Malicious collusion with a third party --
joint and several liability
Not knowing -- not taking responsibility
Agency violation
Knowing -- joint liability
One person has a mistake, one person to bear; Two people make mistakes, two people bear!
1.4.3 Construction project property right system

• " Property Law " is the basic civil law regulating property relations. Its
legislative purpose is to maintain the basic economic system of the
country, maintain the order of the socialist market economy, clarify the
ownership of the property, give full play to the utility of the property,
and protect the property rights of the right holders. 。
1 、 The legal characteristics and main types of real right
– The "Property Law" stipulates that the real right referred to in this Law refers
to the right holder's direct domination and exclusive right over a specific
thing according to law, including ownership, usufructuary right and real
right for security.
ownership
right to control

Absolute right
characteristic

Property right
species Usufructuary right

exclusivity
security interest
• 2 、 Land ownership, construction land use rights and easements
– Land ownership : It is a dominant and absolute right enjoyed by the state or
the peasant collective according to law. China implements the socialist pub-
lic ownership of land, that is, the ownership of the whole people and the col-
lective ownership of the working people.
– The right to use construction land is the right to use state-owned land for
the construction of buildings, structures and ancillary facilities. The right to
use construction land is set up from registration.
– Easement ：
• It refers to the right to use other people 's real estate in accordance with
the contract for the convenience of using their own real estate or to im-
prove their benefits. The real estate of others is the service land, and the
real estate of oneself is the service land.
• In nature, easement is a usufructuary right established according to the
agreement of the parties.
• The easement is established when the easement contract takes effect.
• 3. If the land plan does change, the County Bureau of Land

Management (i.e., the defendant) may require the plaintiff to use the

land in accordance with the new planning requirements. If the plaintiff

cannot use the land according to the requirements of the new plan, the

plaintiff has the right to ask for rescission of the contract, and the

defendant should compensate the plaintiff for the loss. If the plaintiff

can use the land according to the requirements of the new planning, the

plaintiff has the right to continue to perform the contract, and the

defendant should go through the registration procedures for the right

to use the construction land.

25
1.4.4 Construction project guarantee system

• Guarantee: refers to the legal system whereby the parties, according to

legal provisions or mutual agreement, urge the debtor to perform the
debt to realize the rights of the creditor.
• The guarantee contract is the subordinate contract of the main
contract. The main contract is invalid and the guarantee contract is
invalid.
• According to the Guarantee Law, the guarantee means are: guarantee,
mortgage, pledge, lien and deposit.

1 、 guarantee
– The guarantor and creditor shall conclude a guaranty contract in writing.
– The guarantee mode is divided into general guarantee and joint liability
guarantee.
– Common types of guarantee for construction projects: construction bid
security, construction contract performance security, project payment
security.
2 、 mortgage
– According to the provisions of the Security Law and the Property Law, mortgage
means that the debtor or the third party does not transfer the possession of the prop-
erty and takes the property as the guarantee of the creditor's right. If the obligor fails
to perform its obligations, the obligee shall have the right to discount the property in
accordance with the law, or have priority in receiving compensation from the proceeds
of auction or sale of the property.
– The debtor or a third party is called the mortgagor and the creditor is called the mort-
gagee.
– Where the same property is mortgaged to two or more creditors (i.e., double mort-
gaged), the proceeds from the auction or sale of the mortgage shall be satisfied in ac-
cordance with the following provisions:
(1) If the mortgage contract has been registered and taken effect, the payment shall be
made in the order of mortgage registration; Those in the same order shall be satisfied in
full proportion;
(2) If a mortgage contract takes effect on the date of signing, if the mortgaged property
has not been registered, repayment shall be made in the order in which the contract
takes effect; if the order is the same, repayment shall be made in full proportion. The
mortgaged property registered shall be repaid before the mortgaged property not regis-
tered.
3. Pledge (both parties need to agree)
-According to the provisions of the Security Law and the Property Law, the
pledge means that the debtor or a third party hands over its movable
property or rights to the creditor for possession and takes the movable
property or rights as a guarantee in full.
-Pledge right is a kind of agreed security real right, which is characterized by
transfer of possession.
-The pledge is divided into chattel pledge and right pledge.
4. Lien (relatively strong)
-Lien means that the creditor possesses the movable property of the debtor as
agreed in the contract, and if the debtor fails to perform the debt according
to the time limit agreed in the contract, the creditor has the right to lien the
property in accordance with the law and to discount the property or receive
priority compensation from the proceeds of auction or sale of the property.
5. Deposit
-Where the party paying the deposit fails to perform the agreed debt, the real
right requires the return of the deposit; If the party receiving the deposit fails
to perform the agreed debt, it shall return double the deposit.
-The deposit shall be agreed in writing.
-The parties shall specify a time limit for the payment of the deposit in the
contract for the deposit. A contract for deposit shall take effect from the
date of actual delivery of the deposit. The amount of the deposit shall be
agreed upon by the parties, but shall not exceed 20% of the subject matter
of the main contract.
1.4.5Construction project insurance system

• Insurance: refers to the commercial insurance behavior in which the in-

surance applicant pays the insurance premium to the insurer according
to the contract, and the insurer is liable to pay the insurance benefit
for the property damage caused by the possible accidents agreed
upon in the contract, or to pay the insurance benefit when the insured
dies, becomes disabled, becomes ill or reaches the age or time limit
agreed upon in the contract.
• Insurance contract: refers to the agreement between the insurance ap-
plicant and the insurer on insurance rights and obligations.
• Engineering insurance: Insurance that covers construction and installa-
tion projects in the process of construction and installation due to nat-
ural disasters or accidents to compensate for the loss.
1. Construction Engineering All Risks (Owner or Contractor)
-The insurance covers the material losses caused by natural disasters or
accidents during the whole construction period of the engineering
project with civil construction as the main part, as well as the third
party liabilities to be borne according to law.
2. Installation engineering All Risks (usually contractor)
-Cover the installation of machinery, equipment, oil storage tanks,
structural works of steel, cranes, cranes and all kinds of installation
works including mechanical engineering elements.
3. Construction Accident Insurance (construction unit)
-It refers to the insurance that a construction enterprise applies for
construction accident insurance and pays insurance premium to an
insurance company for the personnel engaged in construction
operations and management on the construction site, and the
insurance company pays indemnity for the personal accident and
death that occurs in the process of construction activities and the
personnel who suffer from accidental injury.
Chapter II Construction legal
system
■2.1 Overview of construction law

■ 2.2 Construction permit system

■ 2.3 Qualification system for construc-

tion enterprises

■ 2.4 Supervision of construction

projects
2.1 Overview of building law
• Architectural law has narrow sense and broad sense.
-Narrow sense: Construction Law of the People's Republic of China
-Broad: in addition to the Construction Law, it also includes all the legal
normative documents regulating construction activities; The broader
construction law refers to the general term of the legal norms regulating
construction activities.
• The Construction Law consists of eight chapters and 85 articles
-Eight chapters: General Provisions, construction permit, construction
project contracting and contracting, construction project supervision,
construction production safety management, construction project qual-
ity management, legal liability and supplementary provisions.
2.2 Construction permit system
• The construction permit system is a legal system in
which the relevant administrative departments
authorized by the state examine whether the
construction projects meet the statutory conditions
for commencement of construction before
commencement, and allow the construction projects
that meet the conditions to commence construction.

• At present, there are two forms of approval for the

construction condition of construction project,
namely "construction permit" and "construction
report".
2.2.1 Construction permit and commencement report

• A construction permit for a construction project means a certificate that the construction
unit applies to the competent construction administrative department before the construc-
tion of the construction project begins 。

（一） Construction projects requiring a construction permit

-The "Construction Law" stipulates that before a construction project begins, the construc-
tion unit shall, in accordance with relevant state regulations, apply to the competent
construction administrative department of the people's government at or above the
county level where the project is located for a construction license.
-The Measures on the Administration of Permission for the Construction of Construction
Projects further stipulates that, in the territory of the People's Republic of China, con-
struction units engaged in the construction, decoration and decoration of various types
of buildings and their attached facilities and the installation of their supporting lines,
pipelines and equipment, as well as the construction of urban and municipal infrastruc-
ture projects shall, before starting, comply with the provisions of these Measures. The
construction permit shall be applied to the competent construction administrative de-
partment of the people's government at or above the county level where the project is
located.
(2) Construction projects that do not require a construction permit
1. Small projects below the quota
-Construction projects with an investment of less than 300,000 yuan
or construction area of less than 300 square meters.
2. Rescue and disaster relief projects
(3) Construction projects for which the construction permit shall not
be repeated
-The "Construction Law" stipulates that construction projects that
have approved commencement reports in accordance with the lim-
its of authority and procedures prescribed by The State Council will
no longer receive construction permits.
(4) construction projects as otherwise stipulated
-The Construction Law stipulates that specific measures for the ad-
ministration of construction activities in military housing construc-
tion projects shall be formulated by The State Council and the Cen-
tral Military Commission in accordance with this Law.
• Construction report system is a kind of construction project
construction management system that has been used for a long time.
Only part of the project is approved by the commencement report.
• The commencement report system stipulated by The State Council is
different from the commencement report in construction supervision.
-Different in nature, the former is a kind of administrative permission
system of the competent government department, while the latter is the
approval of the supervision unit to the construction unit in the process of
construction supervision.
-The main body is different, the former is the construction unit to the
competent government department, the latter is the construction unit to
the supervision unit;
-The content is different, the former is mainly the construction unit
should have the conditions to start, the latter is the construction unit
should have the conditions to start.
2.2.2Subject of application and statutory
conditions of approval
• According to the Construction Law, a construction unit shall, in accor-
dance with relevant state regulations, apply for a construction permit
from the competent construction administrative department of the peo-
ple's government at or above the county level where the project is lo-
cated.
• Statutory conditions of approval:
(1) the land use approval procedures for the construction project have been
completed;
(2) Planning permits have been obtained for construction projects in urban
planning areas
(3) If demolition is required, the demolition progress shall meet the con-
struction requirements;
(4) The construction enterprise has been determined;
(5) Construction drawings and technical data that meet the requirements of
construction;
(6) There are specific measures to ensure the quality and safety of the
project;
(7) Construction funds have been implemented;
2.2.3Provisions on delay of commencement
of work, verification and re-approval
• The Construction Law stipulates that the construction unit should start work within three
months from the date of obtaining the construction permit. Those who cannot start work
on time for some reason shall apply to the license-issuing authority for an extension of
time; The extension shall be limited to two times, each time not exceeding 3 months. If the
construction permit is neither commenced nor applied for an extension of time limit nor
exceeded, it shall be annulled automatically.
• According to the "Construction Law", if construction of a construction project under con-
struction is suspended for any reason, the construction unit shall report to the license-issu-
ing authority within one month from the date of suspension of construction, and do a
good job in the maintenance and management of the construction project according to
the provisions. Reports shall be made to license-issuing authorities when construction
projects resume. Before resuming construction of a project that has been suspended for
more than one year, the construction unit shall report to the license-issuing authority for
verification of its construction license.
• For construction projects subject to the commencement report system, the Construction
Law stipulates that for construction projects that have approved commencement reports
in accordance with the relevant provisions of The State Council, but for some reason can-
not start work on time or the construction is suspended, a report shall be made to the ap-
proving authority in time. If for some reason the commencement of work cannot be
scheduled for more than 6 months, the approval formalities for the commencement of
work report shall be completed again. (There is no extension.)
2.3 Construction enterprise qualification system

2.3.1Statutory requirements and levels of enterprise qualifica-

tions
1. Legal conditions
-Registered capital
-Professional technical personnel
-Technical equipment
-The performance of the construction works completed.
2. Qualification sequence: general construction contracting,
professional contracting and labor subcontracting
-Qualification category and qualification level
-The general contracting enterprise qualification of housing
construction project is divided into special grade, first
grade, second grade and third grade.
3. Qualification license
-For the qualification management of construction industry
enterprises, the implementation of hierarchical manage-
ment mode with the cooperation of relevant departments.
4. Application, extension and change
-The validity period of the construction enterprise qualifica-
tion certificate is 5 years.
-If an enterprise needs to extend the validity period of the
qualification certificate upon expiration of the qualification
certificate, it shall apply for the extension of the qualifica-
tion certificate 60 days before the expiry date of the qualifi-
cation certificate. For (1) abiding by the law (2) having no
bad record (3) meeting the qualification, the validity period
shall be renewed for 5 years.
2.3.2Provisions on the prohibition of contracting
projects without qualification or beyond grade level

1. It is prohibited to contract projects without quali-

fication
"Affiliate", "contractor", "actual builder"

2. It is prohibited to contract projects beyond grade

level
• Joint contracting
• Subcontracted work
2.3.3 Provisions prohibiting contracting projects in the name
of other enterprises or other enterprises in the name of their
own enterprises
• The Construction Law stipulates: "It is prohibited for construction enterprises to
go beyond the business scope permitted by their own qualification level or to
contract projects in the name of other construction enterprises in any form.
Construction enterprises are prohibited from allowing other units or individuals
to use their own qualification certificates and business licenses in any form to
contract projects in the name of their own enterprises."
• The Regulations on Quality Control of Construction Projects also stipulate that: "It
is forbidden for a construction unit to go beyond the business scope permitted
by its qualification level or to contract a project in the name of another
construction unit. Construction units are prohibited from allowing other units or
individuals to contract projects in their own name."
• According to the Measures for the Management of Subcontracting of Housing
Construction and Municipal Infrastructure Projects, if the owner of the
subcontracted project fails to subcontract the contracted project, and the project
leader, technical leader, project accounting leader, quality management personnel
and safety management personnel of the project management organization set
up on the construction site are not members of the project contractor's own unit,
It is deemed to allow others to contract projects in the name of the enterprise.
2.4 Project construction supervision
• 2.4.1 overview
1. Concept
Project construction supervision: refers to the micro-supervision and man-
agement activities for project investment, which are carried out by the social-
ized and specialized project construction supervision units to accept the en-
trustment and authorization of the owners, in accordance with the project
construction documents approved by the state, the laws and regulations re-
lated to project construction, the project construction supervision contract
and other project construction contracts.
Five layers of meaning:
– Construction project supervision is the supervision and management activi-
ties for the construction of engineering projects.
– The subject of supervision behavior is the supervision unit;
– The implementation of supervision needs the owner to entrust and autho-
rize;
– Supervision is a construction behavior with definite basis;
– Supervision is a microcosmic supervision and management activity.
2.4.2 The role of construction project supervision

1. It is conducive to improving the scientific level of invest-

ment decision-making in construction projects
-The supervision project with the supervision qualification
provides the whole process of consultation and supervision
for the construction unit.

2. It is beneficial to standardize the construction activities of

all parties involved in the project construction
-The supervision unit supervises and manages the construc-
tion behavior according to the supervision contract and the
related construction project contract. This effective restraint
mechanism runs through the whole process of the project
construction.
2.4.3 Nature of construction project supervi-
sion
1. Service

2, scientific

3. Independence

4. Impartiality
2.4.4 Our country implements the scope of
compulsory supervision

1. National key construction projects

2. Large and medium-sized public utility projects
Related projects with a total investment of more than 30 mil-
lion yuan
3. Block development and construction of residential district
project
Supervision shall be carried out if the building area is over
50,000 square meters
4. Projects utilizing loans and aid funds from foreign govern-
ments or international organizations
5. Other projects under supervision as stipulated by the State
Related infrastructure projects with an investment of more
than 30 million yuan;
Schools, theaters, sports venues
2.4.5 Content and basis of project construc-
tion supervision
• 1. Content
-Three controls, three pipes and one coordination

• 2. Basis
-Relevant laws, administrative regulations, rules,
standards and norms
-Relevant project construction documents
-Contract of supervision entrusted by the construc-
tion unit and contract of related construction
project
2.4.6 Qualification licensing system of engi-
neering supervision units
• The qualification levels of engineering supervision enterprises are classified into
Class A, Class B and Class C, and they are divided into several engineering cate-
gories according to the nature and technical characteristics of the projects.
• Article 34 Paragraph 1 of "Regulations on Quality Control of Construction
Projects" stipulates: "The project supervision unit shall obtain the qualification
certificate of the corresponding level according to law, and undertake the su-
pervision business within the scope of its qualification level permission."
• The article also stipulates: "It is prohibited for a project supervision unit to go
beyond the scope of its own qualification level or assume project supervision
business in the name of another project supervision unit. It is prohibited for
project supervision units to allow other units or individuals to undertake project
supervision business in the name of units. Project supervision units may not
transfer project supervision business."
2.4.7 Type of construction supervision contract

1. Pre-construction supervision contract

2. Design supervision contract

3. Bidding supervision contract

4. Construction supervision contract

Chapter III Legal system of project
tendering and bidding
■ 3.1 Overview of bidding and

tendering

■ 3.2 Bidding procedures

■ 3.3 Project bidding

■ 3.4 Winning the project

■ 3.5 Legal liability

3.1.1Related concepts

• Contracting out a construction project: it means that the construction

unit (or the general contractor) of a construction project delivers all or
part of the construction project tasks (including survey, design,
construction, etc.) to the units with legal qualifications for corresponding
construction activities through bidding or other means, and pays
remuneration according to the contract.
• Contract of construction projects: refers to the act of a unit with legal
qualifications for construction activities to contract construction projects
by bidding or other means, sign a contract, determine the rights and
obligations of both parties, and obtain remuneration as agreed.

• According to the provisions of the Construction Law of the People's

Republic of China, there are two ways of contracting out construction
projects: tendering and bidding and direct contracting.
• Project bidding: It means that the tenderer informs the entrusted work content and
requirements to the bidders who intend to participate in the competition with the
bidding documents, and asks them to put forward the implementation plan and
price according to the specified conditions, and then through evaluation and
comparison, Select trustworthy units with reliable reputation, strong technical
ability, high management level and reasonable quotation (design units, supervision
units, construction units, suppliers) and entrust them to complete the project in the
form of contracts.
• Project bidding: it means that each bidder submits the bidding documents
according to its own ability and management level, in accordance with the unified
requirements stipulated in the bidding documents, and tries to obtain the
qualification for implementation.
• Direct contracting of construction projects: it refers to the transaction mode in
which the contracting party and the contractor negotiate directly to agree on the
price of the project construction, the price, time limit and other conditions of the
project construction.
3.1.2 Scope, scale and method of bidding for
project construction
1. Scope of bidding for construction projects
• (1) Infrastructure projects related to public interests and public
safety: coal, oil and natural gas; Railways and highways; Postal
services and communications; Flood control and irrigation; A
road, bridge, etc
• (2) Public utilities related to social public interests and public
safety: water supply and power supply; Science and technology,
education; Sports and tourism; Health; Commercial housing etc
• (3) Using state-owned funds to invest in projects
• (4) National financing projects
• (5) Projects using funds from international organizations or for-
eign governments
2, the construction project must bid scale standard
• According to the Provisions on the Standards for the Scope and Scale
of Bidding for Engineering Construction Projects, all kinds of
engineering construction projects within the scope of bidding shall be
subject to bidding if they meet one of the following standards ：
(1) The estimated price of a single construction contract is more than 2
million yuan;
(2) Purchase of important equipment, materials and other goods, the
estimated price of a single contract is more than 1 million yuan;
(3) The estimated price of a single contract for survey, design, supervision
and other services is more than 500,000 yuan;
(4) The estimated price of a single contract is lower than the standards
specified in the preceding three items, but the total project investment
is more than 30 million yuan.
• 3. Construction projects that may not be subject to bidding

(1) It is not suitable for bidding because it involves national security, state
secrets or rescue and disaster relief;
(2) Migrant workers are needed to use poverty alleviation funds to im-
plement work relief;
(3) where the main construction technology adopts a specific patent or
proprietary technology;
(4) The project constructed by the construction enterprise for its own use,
and the qualification level of the construction enterprise meets the
project requirements;
(5) The original winning bidder still has the ability to contract the sup-
plementary small projects or the main layer construction of the
projects under construction;
(6) Other circumstances provided for by laws and administrative regula-
tions.
4 、 Bidding method
(1) Public bidding: it means that the tenderee invites non-specific legal persons or
other organizations to bid by way of bidding announcement.
According to the Measures on Bidding and Tendering for Construction Projects,
the following construction projects shall be subject to public bidding according
to law: (a) key national construction projects determined by the development
planning department of The State Council; (b) local key construction projects
determined by the people's governments of provinces, autonomous regions
and municipalities directly under the Central Government; (c) All state-owned
funds are used for investment or state-owned funds are used for investment in
engineering construction projects in which the State holds a controlling stake
or occupies a dominant position.
(2) Invitation to bid: it means that the tenderee invites a specific legal person or
other organization to bid by way of invitation to bid.
(a) The project is technically complex or has special requirements and there are
only a few potential bidders to choose from; (b) restricted by the natural geo-
graphical environment; (c) Involving national security, state secrets or rescue
and disaster relief, which is suitable for tendering but not suitable for public
tendering; (d) The cost of the proposed public tender is not worthwhile in rela-
tion to the value of the project; (e) It is not suitable for public bidding according
to laws and regulations.
3.2 Bidding procedure
• The Law on Tendering and Bidding stipulates that tendering and
bidding activities shall follow the principles of openness, fairness,
justice and honesty.
• The basic procedures of bidding for construction projects mainly
include ：
– Implement bidding conditions
Tender preparation stage
– Entrust a bidding agency
– Preparation of bidding documents
– Issue a tender announcement
– or invitation to bid Bidding stage
– Qualification examination
– Bid opening
– Bid evaluation
The stage of bidding
– Win the bid
and final bid
– Sign a contract
• 1. Implement bidding conditions
-1. Construction funds have been implemented
-2. Relevant approval procedures have been completed
-3. Necessary preparations have been completed
• Specific provisions of the Bidding and Tendering Measures for
Construction Projects:
-The tenderer has been established according to law
-Where the preliminary design and budget estimate are subject to
examination and approval procedures, they have been approved
-Where the scope, method and organizational form of tender are sub-
ject to approval procedures, they have been approved
-There are funds or sources of funds already in place
-Have the design drawings and technical data required for bidding.
• 2. Entrust bidding agency
-Bidding agency is a social intermediary organization established ac-
cording to law, engaged in bidding agency business and providing re-
lated services.
• According to the provisions of the Law on Tendering and Bidding,
a tendering agency shall meet the following requirements:
-Having the business premises and corresponding funds engaged in
tendering agency business;
-Having the appropriate professional strength to prepare bidding
documents and organize bid evaluation;
-There is a pool of experts in technical and economic fields who meet
the statutory requirements and can be selected as members of the
bid evaluation committee.
• 3. Preparation of bidding documents
-The Law on Tendering and Bidding stipulates that a tenderer
shall prepare bidding documents according to the characteris-
tics and needs of the project to be invited for tender.
• The tender documents generally include the following con-
tents:
-Invitation for tender
-Instructions to bidders
-Main terms of the contract
-Tender document format
-Where a bill of quantities is used for bidding, the bill of quan-
tities shall be provided
-Technical clause
-Design drawing
-Criteria and methods for bid evaluation
-Tender auxiliary materials
• The Law also stipulates that bidding documents shall not re-
quire or indicate specific producers or suppliers or any other
content that incline to or exclude potential bidders. Where a
tenderer makes necessary clarifications or amendments to the
issued tender documents, it shall notify all recipients of tender
documents in written form at least 15 days before the deadline
for submission of bid documents required in the tender docu-
ments.
• The tenderer shall determine the reasonable time required by
the bidder to prepare the bid documents; However, for a
project subject to tender according to law, the period shall not
be less than 20 days from the date of issuance of the tender
documents to the deadline of submission of the bid documents
by the bidder.
• 4. Issue bidding announcement or invitation to bid
– 《 The Law on Tendering and Bidding stipulates that a bidding announcement shall be issued if the
method of public bidding is adopted. For projects subject to tender according to law, the tender
announcement must be published through newspapers, periodicals, information networks or other

media designated by the state 。

• The contents of the tender announcement generally include:
-Name of tenderer
-Sources of funds for construction projects
-Project overview and the bidding scope of the brief introduction
-Place, time and price of purchase of prequalification documents, etc.
• Where invitation to bid is adopted, an invitation to bid shall be issued,
the content of which is the same as the requirements in the above
tender announcement. No less than 3 bidders shall be invited, and all
of them shall have the ability to undertake the bidding project.
• 5. Qualification examination
-As stipulated in the Tendering and Bidding Law, if the relevant state
regulations have stipulations on the qualifications of bidders or the
bidding documents have stipulations on the qualifications of bidders,
bidders shall meet the specified qualifications.
• According to the Measures for the Administration of Bidding and
Tendering for Project Construction, the tendering unit shall provide
the following materials to the tendering unit:
-Enterprise business license and qualification certificate
-Corporate resume
-Free money position
-Total number of employees (including technical personnel, technical
workers of order of magnitude and technical grade, etc.)
-Major projects undertaken in the past three years and their quality
-List of existing major construction tasks, including those under
construction and those not yet started.
• 6. Bid opening
-According to the Tendering and Bidding Law, the bid opening
shall be conducted publicly at the same time as the deadline
for submission of bid documents specified in the bidding doc-
uments; The place of bid opening shall be the place deter-
mined in advance in the tender documents.
-According to the Measures on Bidding and Tendering for
Construction Projects, the bid inviter shall not accept the bid
documents under any of the following circumstances:
(1) Overdue delivery or failure to deliver the goods to the des-
ignated place;
(2) Failing to seal as required by the bidding documents.
• 7. Bid evaluation
-According to the Tendering and Bidding Law, bid evaluation shall be con-
ducted by a bid evaluation committee established by the tenderee according
to law.
-For a project subject to tender according to law, the bid evaluation commit-
tee shall be composed of representatives of the tenderer and experts in tech-
nical, economic and other fields, with an odd number of five or more mem-
bers, of whom the experts in technical, economic and other fields shall not be
less than two thirds of the total number of members.
-The person who has an interest relationship with the bidder shall not enter
the bid evaluation committee of the relevant project, and those who have al-
ready entered shall be replaced.
-The list of members of the bid evaluation committee shall be kept confiden-
tial until the winning result is confirmed.
• According to the Measures on Bidding and Tendering for Construction Projects,
if the tender documents are in any of the following circumstances, the bid eval-
uation committee shall, after preliminary examination, reject the bid:
(1) Without the seal of the unit and without the signature or seal of the represen-
tative or the agent authorized by the legal representative;
(2) It does not fill in the prescribed format, the content is incomplete or the key
words are blurred and unrecognizable;
(3) The bidder submits two or more bidding documents with different contents, or
submits two or more offers for the same bidding project in one bidding document,
and does not declare which one is valid, except for the submission of alternative
bidding scheme as stipulated in the bidding documents; (multi-scheme quotation)
(4) The name or organizational structure of the bidder is inconsistent with the pre-
qualification;
(5) Failing to submit bid security as required in the bidding documents;
(6) Joint bidding agreement of all parties to the consortium is not attached to the
consortium bid.
• 8. Winning the bid
-The Law on Tendering and Bidding stipulates that the tenderer determines
the successful bidder based on the written bid evaluation report submitted by
the bid evaluation committee and the candidates recommended for winning
the bid. The bid inviter may also authorize the bid evaluation committee to di-
rectly determine the winning bidder.
-After the winning bidder is determined, the tenderer shall issue a notice of
winning the bid to the winning bidder and notify all the unsuccessful bidders
of the result of winning the bid at the same time.
-The acceptance notice shall have legal effect on the tenderer and the winning
bidder. If, after the notification of winning the bid is issued, the tenderer
changes the result of winning the bid, or the winning bidder abandons the
winning project, it shall bear legal liability according to law.
• 9. Sign the contract
-According to the Law on Tendering and Bidding, the tenderer and the win-
ning bidder shall conclude a written contract in accordance with the tender
documents and the tender documents of the winning bidder within 30 days
from the date the notice of award is issued. The tenderer and the winning ten-
derer shall not enter into any other agreement which deviates from the sub-
stantive content of the contract.
-Article 21 of the Interpretation of the Supreme People's Court on the Applica-
tion of Legal Issues in the Trial of Disputes over Construction Contracts of
Construction Projects stipulates: "Where the parties hereto conclude a sepa-
rate construction contract for the same construction project and the filed con-
tract of winning the bid are inconsistent in substantive content, the filed con-
tract of winning the bid shall be the basis for settlement of the project price."
3.3 Project bidding

3.3.1 Statutory requirements for tender documents

1 、 Content requirements of tender documents
• The Tendering and Bidding Law stipulates that the bidder shall prepare
the bidding documents in accordance with the requirements of the
bidding documents. The tender documents shall respond to the sub-
stantive requirements and conditions set forth in the tender docu-
ments.
• According to the Measures for Bidding and Tendering of Construction
Projects, tender documents generally include the following contents ：
– (1) Letter of Tender
– (2) Tender offer
– (3) Construction organization design
– (4) Table of business and technical deviations
• 2 、 Revision and withdrawal of tender documents
– According to the Law on Tendering and Bidding, a bidder may supplement,
modify or withdraw the submitted tender documents and notify the ten-
derer in writing before the deadline for submission of tender documents re-
quired by the tender documents. The supplementary and modified contents
shall be an integral part of the bid document.
– The Measures for Bidding and Tendering for Construction Projects further
stipulates that a bidder shall not supplement, modify, substitute or withdraw
his or her bid documents before the expiration of the bid validity period
stipulated in the bidding documents after the deadline for submission of
bid documents. If a bidder supplements, modifies or replaces the tender
documents, the tenderer shall not accept them;
– If the bidder withdraws his bid document, his bid security will be confis-
cated.
• 3 、 Delivery and receipt of tender documents
– According to the Law on Tendering and Bidding, the bidder shall deliver the tender
documents to the bidding place before the deadline for submission of tender
documents required by the tender documents. Tender documents delivered after the
deadline for submission of tender documents required by the tender documents shall be
rejected by the tenderer.
– According to the Measures on Bidding and Tendering for Construction Projects, if there
are less than 3 bidders, the tenderer shall bid again according to law. If there are still less
than 3 bidders after the re-bidding, it belongs to a construction project that must be
examined and approved, and may no longer be subject to tender after being submitted
to the original examining and approving department. For other construction projects,
the tenderee may decide on its own not to conduct bidding.
4 、 Validity of tender
The validity period of a bid is calculated from the
deadline of submission of bid documents by the
bidder and generally ends on the date of issuance
of the notice of award. During this period, all bid-
ding documents remain valid.
3.3.2 Bid bond
• 1. Concept: Bid security refers to the bid responsibility guarantee in a certain
amount issued by the bidder to the tenderer in accordance with the
requirements of the bidding documents. Its essence is to avoid the loss caused
to the tenderer by the bidder's random withdrawal or cancellation of the bid or
failure to submit the performance bond and sign the contract after winning the
bid.
• 2. Form and Amount:
-In addition to cash, bid security may be bank guarantee, certified check, bank
draft or cash check issued by a bank.
-According to the Measures for Bidding and Tendering of Construction Projects,
the bid security shall not exceed 2% of the total bid price, but the maximum shall
not exceed 800,000 yuan. The validity of bid security shall exceed the validity of bid
by 30 days. The bidder shall submit the bid security together with the bid
documents to the tenderee in accordance with the manner and amount required
in the bid invitation documents.
• 3. Return
-According to the Measures on Bidding and Tendering for Construction Projects,
the tenderer shall return the bid security to the unsuccessful bidder within 5
working days after signing the contract with the winning bidder 。
3.3.3 The provisions prohibiting the bidder
from carrying out acts of unfair competition
1 、 Bidders bid in collusion with each other
2. Bidder and tenderee bid in collusion
3. The bidder seeks to win the bid by means of bribery
4. Bidders bid below cost
5. The bidder bids in the name of others or fraudulently wins
the bid by resorting to fraud in other ways
3.3.4 Consortium bidding

• The Law on Tendering and Bidding stipulates that two or more legal persons or other
organizations may form a consortium and bid jointly as one bidder.
• 1. Characteristics
• The consortium consists of two or more bidders, and participation
in the bidding is a voluntary act of all parties;
• A consortium is a temporary organization without the status of a
legal person.
• The parties to the consortium shall bid jointly as one bidder. After
winning the bid, the tenderer and the parties to the consortium
shall jointly sign a contract, and the parties to the consortium shall
bear joint liabilities to the tenderer for the winning project.
• After signing the joint bidding agreement, each party of the
consortium shall not bid separately in its own name, nor shall it
form a new consortium or join other consortiums in bidding for
the same project.
2 、 Qualification condition
– According to the Tendering and Bidding Law, each party to the consortium
shall have the corresponding capacity to undertake the project under ten-
der; If the relevant state regulations or bidding documents have stipulations
on the qualifications of bidders, all parties to the consortium shall have the
corresponding qualifications stipulated.
– For a consortium composed of units of the same specialty, the qualification
level shall be determined according to the unit with lower qualification level.
(On the principle of low not high)
– The Measures for Bidding and Tendering of Construction Projects also stipu-
late that if the consortium participates in the prequalification examination
and is approved, any change in its composition must be approved by the
tenderee before the deadline for submission of the bid documents.
3 、 Consortium agreement
– According to the Tendering and Bidding Law, all parties to the consortium
shall sign a joint tender agreement, clearly specify the work and
responsibilities to be undertaken by each party, and submit the joint tender
agreement together with the tender documents to the tenderer.
– If there is no joint bid agreement attached to the consortium bid, the bid
evaluation committee will reject the bid after preliminary examination.

4 、 Consortium bid bond

– As stipulated in the Measures for Bidding and Tendering
for Construction Projects, a bid bond shall be submitted
in the name of all parties to the consortium or the leader
of the consortium. The bid security submitted in the
name of the consortium leader shall be binding on all
members of the consortium.
3.4 Win the project

3.4.1 Confirm the winning bidder

1. Determining the scope of the winning bidder
The Law on Tendering and Bidding stipulates that the tenderer
determines the successful bidder based on the written bid
evaluation report submitted by the bid evaluation committee and
the candidates recommended for winning the bid. The bid inviter
may also authorize the bid evaluation committee to directly
determine the winning bidder.
For a project subject to tender according to law, the tenderer shall
determine the candidate who wins the bid in the first place as the
winning bidder.
If the winning candidate who ranks first abandons winning the bid,
or claims to be unable to perform the contract due to force
majeure, or fails to submit the performance bond within the
prescribed time limit as stipulated in the tender documents, the
tenderer may determine the winning candidate who ranks
2 、 The definitive conditions of the winning bidder
According to the Law on Tendering and Bidding, a successful bidder's bid
shall meet one of the following conditions:
(1) It can meet the comprehensive evaluation criteria stipulated in the
bidding documents to the maximum extent;
(2) It can meet the substantive requirements of the bidding documents,
and the evaluated bid price is the lowest, except that the bid price is
lower than the cost.
3 、 The time limit for determination of the winning bidder
and the publicity of the winning candidate
• According to the Measures on Bidding and Tendering for Construction Projects,
the tenderer shall generally determine the winning bidder within 15 days after
the bid evaluation committee submits a written bid evaluation report, but at
the latest, the winning bidder shall be determined 30 working days before the
end of the bid validity period.
• All localities shall establish a public announcement system of the bid-winning
candidates.
-If public bidding is adopted, the information of the pre-winning bidder shall be
publicized on the same information network and construction project trading
center as the announcement of the bidding of the project, and the shortest time of
publicity shall be no less than 2 working days, before the notice of winning the bid
is issued.
3.4.2 Report on bidding and tendering

• The Law on Tendering and Bidding stipulates that, for projects subject to tender
according to law, the tenderer shall, within 15 days from the date of the selec-
tion of the winning bidder, submit a written report on the tendering and bid-
ding to the relevant administrative supervision department.
• The written report should include at least the following:
-Scope of bidding;
-The way of bidding and the media for issuing the bidding announcement;
-Instructions to bidders, technical terms, bid evaluation standards and methods,
main terms of the contract and other contents in the bidding documents;
-The composition of the bid evaluation committee and the bid evaluation report;
-Winning result
3.4.3 Performance bond

• If the bid invitation documents require the winning bidder to submit

performance security or other forms of performance security, the
winning bidder shall submit the performance security; Refusal to
submit shall be deemed as abandonment of the bid winning project.
• Where the tenderer requires the winning bidder to provide
performance security or other forms of performance security, the
tenderer shall provide the winning bidder with guarantee of payment
of project funds at the same time. A tenderer may not increase the
performance bond without authorization, and may not force a
tenderer to advance the construction funds of a winning project.
Chapter IV Legal system of
construction project con-
tracts and labor contracts
■ 4.1 Construction project contract system

■ 4.2 Labor contract and labor relations system

■ 4.3 Relevant contracts

4.1 Construction project contract system
4.1.1 Legal characteristics and principles of contract formation
1. Legal characteristics of the contract
• 《 According to the Contract Law, a contract is an agreement
between natural persons, legal persons and other organizations
with equal subjects to establish, change and terminate the rela-
tionship of civil rights and obligations.
• Legal characteristics:
-Contract is a kind of legal act;
-The parties to a contract shall have equal legal status. Through
voluntary consultation, neither party may impose its own views or
propositions on the other party.
-The purpose of a contract is to establish, change and terminate
the relationship of civil rights and obligations.
-There must be two or more parties to the formation of a contract
2 、 Principles of contract formation
• Principle of equality
• Voluntary principle
• Principle of equity
• Principle of good faith
• Principle of legality
4.1.2 Contract offer and acceptance

1 、 Contract formation and formation

• Contract conclusion: refers to the state in which the contracting parties
express their intentions and reach an agreement, including the whole
dynamic process of the contracting parties' self-contact, negotiation,
reaching an agreement and signing a bargaining agreement and static
agreement.
• Formation of a contract: it means that the parties have reached an
agreement on the main terms of the contract. The following conditions
shall be met for the formation of the contract:
-There are more than two contracting parties
-The parties agree on the main terms of the contract.
• The establishment of a contract usually goes through two stages: offer
and acceptance.
2 、 offer
• According to the Contract Law, an offer is an expression of intent to
enter into a contract with another person.
• Constituent elements: (1) specific determination of the content and (2)
indicating that the offeror is bound by the offeror's acceptance.
• Invitation to offer: The expression of intention to have an offer made
to you. For example: sent price list, auction announcement, tender
announcement, prospectus, commercial advertisement, etc.
-In the tendering and bidding activities of construction projects, the
bidding document is an invitation to offer and is not legally binding on
the tenderer; Tender documents are offers and shall be bound by the
expression of intent they have made to enter into a contract with others.
• The legal effect of an offer
-The Contract Law provides that an offer becomes effective when it
reaches the offeree.
3 、 promise
• According to the Contract Law, an acceptance is the offeree's expres-
sion of intention to agree to an offer. For example, the notice of win-
ning the bid issued by the tenderer to the bidder.
• Form of acceptance: Acceptance shall be made by notice, except
where acceptance may be made by conduct in accordance with the
customs of the transaction or as indicated in the offer. This is usually
an act of performance, such as paying in advance, starting work on the
site, etc.
• Effectiveness of Acceptance: The acceptance becomes effective when it
reaches the offeror.
• Content of the acceptance: It shall be consistent with the content of
the offer.
4.1.3 Regulations on the time limit for con-
struction projects and payment of prices
1 、 Construction period
• Duration: refers to the number of days of contract agreed by the
Owner and the contractor according to the total calendar days (including
legal holidays) in the agreement.
（ 1 ） Commencement and commencement date
– Commencement Date: refers to the absolute or relative date agreed by the
owner and the contractor in the agreement for the Contractor to start
construction.
– The Contractor shall commence work in accordance with the
commencement date stipulated in the Agreement. If the contractor fails to
start work on time, he shall, no later than 7 days before the start date
agreed in the Agreement, submit in writing to the Engineer (Director or
Party A's representative) the reasons and requirements for the delay in
starting work. The Engineer shall reply to the Contractor in writing within 48
hours after receiving the application for delay in commencement of work. If
the engineer does not reply within 48 hours, he shall be deemed to have
agreed.
（ 2 ） Suspension of construction
• If the engineer deems it necessary to suspend the construction, he
shall request the contractor to suspend the construction in writing and
give his opinion in writing within 48 hours after making the request.
The Contractor may, after implementing the handling suggestions
made by the engineer, request for resuming work in writing, and the
engineer shall give a reply within 48 hours. If the engineer fails to give
the handling suggestions in time, or fails to reply within 48 hours after
receiving the Contractor's request for resuming work, the Contractor
shall resume work by himself.
• In case of work stoppage caused by the Owner, the Owner shall bear
the additional contract price, compensate the contractor for the loss
caused thereby, and extend the work period accordingly. If the work is
stopped due to the Contractor's reasons, the Contractor shall bear the
expenses incurred and the time limit shall not be postponed.
• （ 3 ） Delay of construction period
– The developer fails to provide drawings and commencement condi-
tions as agreed in the special terms;
– The developer fails to pay the project advance payment and
progress payment on the agreed date, resulting in the construction
cannot proceed normally;
– The engineer fails to provide required instructions and approvals as
agreed in the contract, resulting in abnormal construction;
– Design changes and engineering volume increases;
– Within one week, if water, power and gas are cut off for reasons
other than the contractor's, the total work stop-work is more than 8
hours;
– Force majeure
– Other circumstances agreed in the special terms or agreed by the
engineer to delay the time limit.
（ 4 ） Date of completion
– Completion date: refers to the absolute or relative date agreed by the owner
and the Contractor in the agreement for the contractor to complete the
project within the scope of the contract.
– The Interpretation of the Supreme People's Court on the Application of Law
to the Trial of Cases Concerning Disputes over Construction Contracts of
Construction Projects stipulates that if the parties have disputes over the ac-
tual completion date of construction projects, they shall be dealt with ac-
cording to the following circumstances ：
• A. If the construction project passes the completion acceptance inspec-
tion, the date of completion shall be the date of completion;
• B. If the contractor has submitted the completion acceptance report and
the Owner delays the acceptance, the date on which the Contractor
submits the acceptance report shall be the completion date;
• C. Where the Developer arbitrarily uses the construction project before
completion and acceptance, the date of transfer of possession of the
construction project shall be the completion date.
2 、 Payment of construction costs
• It is the owner's main contractual obligation and the contractor's main
contractual right to pay the project price in accordance with the time,
amount and payment terms agreed in the contract.
• According to the Contract Law, after the contract takes effect, if the
parties have not agreed or agreed clearly on the quality, price or re-
muneration, place of performance and other contents, they may sup-
plement the contract through an agreement. If no supplementary
agreement can be reached, it shall be determined in accordance with
the relevant terms of the contract or in accordance with trading prac-
tices.
• The "black and white contract" dispute
-"Where the parties hereto conclude a separate construction contract for
the same construction project with respect to the same construction
project, the substantive contents of which are inconsistent with those of
the bid-winning contract put on record, the bid-winning contract put on
3 、 Provisions on settlement of disputes over project price settle-
ment
– (1) It shall be deemed that the Employer has approved the
Contractor's unilateral settlement price
– (2) Settlement of project funds in dispute with the project
quantity
– (3) Interest payment in arrears of project payment
– (4) Treatment of engineering cushion capital
– (5) The Contractor's priority in compensation of the project
price
4.1.4 Provisions on compensation for losses
in construction projects
1. Concept
-Compensation for loss: It refers to a form of liability for breach of
contract in which the party in breach of contract compensates the
other party for the loss caused by its non-performance or incom-
plete performance of its obligations under the contract.
2. Constitutive elements
-(1) There is a breach of contract; (2) it causes losses; (3) there is a
causal relationship between the breach of contract and property
losses; (4) the defaulter is at fault, or is not at fault, but should be
compensated according to law.
3. Scope
-Including direct loss (people, materials, machinery) and indirect loss
(gain, that is, loss of expected benefits).
4 、 restriction
• The principle of foreseeability: According to the Contract Law, the
damages shall not exceed the losses that may be caused by the breach
of the contract foreseen or should have been foreseen by the party in
breach of the contract when it concluded the contract.
• Take measures to prevent excessive losses: The Contract Law stipulates
that after one party breaches the contract, the other party shall take
appropriate measures to prevent further losses; Where the loss is
increased due to failure to take appropriate measures, no claim shall
be made for the increased loss. The reasonable expenses incurred by
the parties to prevent further loss shall be borne by the breaching
party.
4.1.5 The provisions of an invalid contract

1. Concept
Invalid contract: refers to the contract whose content or form
violates the mandatory provisions of laws, administrative
regulations and social and public interests, and therefore
cannot be legally binding and is not protected by law.
2. Type
– (1) One party harms the interests of the state by concluding
a contract by means of fraud or coercion;
– (2) malicious collusion that damages the interests of the
State, a collective or a third party;
– (3) concealing illegal purposes in a lawful form;
– (4) Damage to the public interest
– (5) violating the mandatory provisions of laws and
administrative regulations.
3 、 The main situation of invalid construction contract of construc-
tion project
– (1) Beyond the qualification
– (2) Affiliation
– (3) Where a bid must be made but the bid is not made or the win-
ning bid is invalid
– (4) Illegal subcontracting and illegal subcontracting
4 、 Settlement of project money for invalid construction contract
– The Interpretation of the Supreme People's Court on the Legal Is-
sues Applicable to the Trial of Disputes Concerning Construction
Contracts of Construction Projects stipulates that the construction
contract of construction projects is invalid, but if the construction
projects have passed the completion and acceptance inspection,
the contractor's request for payment of the project price according
to the contract shall be supported.
4.1.6 Performance, alteration, assignment,
revocation and termination of a contract
1 、 Performance of contract
– The Contract Law stipulates that the parties shall fully perform their
obligations in accordance with the contract. The parties shall abide
by the principle of good faith and perform obligations such as notifi-
cation, assistance and confidentiality in accordance with the nature,
purpose and customs of the contract.
2 、 Alteration of the contract (subject unchanged, content changed)
– The amendment to the contract shall be agreed upon by both par-
ties through consultation
– The alteration of the contract shall follow the legal procedure
– The presumption that the contract changes are not clearly agreed
upon
3 、 Assignment of contractual rights and obligations (content unchanged, sub-
ject changed)
– According to the Contract Law, the creditor may assign all or part of the rights
under a contract to a third party, except in one of the following cases: (1) no
assignment shall be made according to the nature of the contract; (2) no as-
signment shall be made according to the agreement of the parties; (3) no as-
signment shall be made according to the provisions of the law.
– The Contract Law stipulates that the creditor shall notify the debtor of the as-
signment of the right.
– According to the Contract Law, after the debtor receives the notice of assign-
ment of a bond, the debtor may claim any defense against the assignor
against the assignee.
– According to the Contract Law, where the creditor assigns the right, the as-
signee obtains the right in connection with the bond, except where the subor-
dinate right is exclusive to the creditor himself. (i.e., transfer from right to right
with master)
– According to the Contract Law, where a debtor transfers all or part of its con-
tractual obligations to a third party, it shall obtain the consent of the creditor.
– The Contract Law stipulates that a party may, with the consent of the other
party, transfer its rights and obligations under the contract to a third party.
4 、 Revocable contract
• According to the Contract Law, a party to any of the following con-
tracts shall have the right to request a people's court or an arbitration
institution to alter or cancel them:
-A contract entered into due to a material misunderstanding
-A contract that is manifestly unfair at the time of its formation
-A contract concluded by means of fraud, duress or taking advantage of
a person's situation
• It should be noted that the right to cancel shall be exercised within
one year from the date when the cause for cancellation is known or
should be known, and an application shall be made to a people's court
or an arbitration institution.
5 、 Termination of contract
• According to the Contract Law, the rights and obligations under a
contract shall terminate under any of the following
circumstances:
(1) the debts have been performed as agreed;
(2) The contract is terminated;
(3) Debts offset each other;
(4) The debtor puts the subject matter into escrow according to law;
(5) the creditor discharges the debt;
(6) The debentures and liabilities are all ascribed to one person;
(7) Other circumstances under which termination is prescribed by
law or agreed upon by the parties.
4.2 Labor contract and labor relations system

4.2.1 Conclusion of labor contract

1. Principles
-Legality, fairness, equality, voluntariness, consensus, good faith
2. Types
-Fixed term labor contract: refers to the contract in which the em-
ployer and the laborer agree on the termination time of the con-
tract, that is, the parties to the labor contract clearly stipulate the
beginning and termination time of the contract validity in the labor
contract.
-Labor contract with no fixed term refers to the labor contract with
no definite termination time agreed between the employer and the
laborer.
3 、 Matters needing attention
• (1) The establishment of labor relations shall conclude labor contracts. The em-
ploying unit establishes labor relations with the laborer from the date of em-
ployment. After the establishment of labor relations, a written labor contract
shall be concluded within one month from the date of employment.
• (2) If the labor contract does not clearly agree on labor remuneration, labor
conditions and other standards, resulting in disputes, the employer and the
worker may negotiate again; If consultation fails, the provisions of the collective
contract shall apply; Where there is no collective contract or the collective con-
tract does not provide for labor remuneration, equal pay for equal work shall be
applied; Where there is no collective contract or the collective contract does
not provide for labor conditions and other standards, relevant state provisions
shall apply. (Note the order!)
• (3) If the term of the labor contract is more than 3 months but less than 1 year,
the probation period shall not exceed 1 month; Where the term of a labor con-
tract is not less than 1 year but less than 3 years, the probation period shall not
exceed 2 months; For a labor contract with a fixed term of more than 3 years or
without a fixed term, the probation period shall not exceed 6 months.
4.2.2 Performance, alteration, rescission and
termination of the labor contract
1 、 Fulfillment and alteration of labor contract
– The employing unit shall fulfill its obligation to pay labor
remuneration to the laborer;
– Overtime work arranged by the employing unit according
to law;
– Workers have the right to refuse illegal command and
risky operations;
– The change of the employer shall not affect the perfor-
mance of the labor contract;
– Alteration of labor contract.
• 2 、 Rescission and termination of labor contracts
– (1) The laborer may unilaterally terminate the labor con-
tract (the unit is at fault).
– (2) The employer may unilaterally terminate the provi-
sions of the labor contract (the laborer is at fault, the la-
borer is not at fault)
– (3) Provisions on economic downsizing of employers
– (4) The employer shall not rescind the labor contract
– (5) Termination of the labor contract
– (6) Economic compensation for termination of labor con-
tract
4.2.3 Settlement of labor disputes

• 1. Mediation

• 2. Arbitration

• 3. Litigation
4.3 Related contract

1 、 Contract for work

• According to the Contract Law, a contract for work is a contract
whereby the hiree completes the work as required by the order-
ing party, delivers the work results, and the ordering party pays
the remuneration. Including: processing, order, repair, copy,
testing, inspection and other work 。
• characteristic ：
– (1) The object of a contract for work is the completion of a
certain amount of work and the delivery of the work results
– (2) The contractor shall use its own equipment, technology
and labor to complete the contracted work
– (3) The contractor's work is independent
2 、 Commission contract
• According to the Contract Law, an agency contract is
a contract in which the principal and the agent agree
that the agent shall handle the affairs of the principal
• characteristic ：
– The purpose of a commission contract is to handle or
manage something for another person
– The conclusion of the commission contract is based on
mutual trust
– A commission contract is not necessarily a paid contract
 Chapter V Legal system of con-
struction project production safety
■ 5.1 Construction safety production permit system

■ 5.2 Construction safety production responsibility and ed-

ucation and training system

■ 5.3 Construction site safety protection system

■ 5.4 Emergency rescue and investigation

■ 5.5 Construction project safety responsibility system of

the construction unit and related units

• Construction engineering is one of the high risk and accident
prone industries.

• In construction projects, the principle of "safety first and pre-

vention first" must be implemented, the responsibility system
for production safety shall be established and implemented ac-
cording to law, training and education on production safety
and safety protection on construction sites shall be strength-
ened, and an emergency rescue mechanism for construction
safety accidents shall be established.
5.1 Construction safety production permit system

• The "List of Production Safety License" stipulates that the state shall implement
a production safety license system for mining enterprises, construction
enterprises, and enterprises producing hazardous chemicals, fireworks and
firecrackers, and explosive materials for civil use (hereinafter referred to as
enterprises). An enterprise that has not obtained a production safety license
may not engage in production activities 。
1 、 Conditions for applying for safety production permit
– According to the Regulations on Production Safety License, an
enterprise shall meet 13 requirements for production safety to
obtain a production safety license.
– In the Provisions on the Administration of Safety Production
License for Construction Enterprises, the safety production
conditions for construction enterprises to obtain safety production
license are specified as follows:
• (1) Establish and improve the production safety responsibility system, formulate
complete production safety rules and regulations and operation procedures;
• (2) To ensure the investment of funds required for safe production conditions of
the unit;
• (3) To set up an administration of production safety, which shall be staffed with
full-time administration personnel of production safety in accordance with
relevant state regulations;
• (4) The principal person in charge, the person in charge of the project and the
full-time administrative personnel of production safety have passed the
examination of the competent construction department or other relevant
departments;
• (5) The special operation personnel shall pass the examination of the relevant
competent business department and obtain the special operation qualification
certificate;
• (6) Management personnel and operating personnel shall be educated and
trained on production safety at least once a year and pass the examination;
• (7) To participate in industrial injury insurance according to law, to handle accident injury
insurance for the personnel engaged in dangerous operations on the construction site
according to law, and to pay insurance premiums for the employees;
• (8) The office, living area and working place of the construction site and the safety
protective appliances, machinery and equipment, construction machinery and accessories
shall meet the requirements of the relevant laws, regulations, standards and procedures of
production safety;
• (9) Taking measures to prevent and control occupational hazards, and equipping operators
with safety protective appliances and safety protective clothing that meet the national or
industrial standards;
• (10) Having prevention, monitoring measures and emergency plans for the parts and links
in the construction site that are prone to major accidents;
• (11) Having emergency rescue plans for production safety accidents, emergency rescue
organizations or emergency rescue personnel, and being equipped with necessary
emergency rescue equipment and equipment;
• (12) Other conditions stipulated by laws and regulations.
• Special operation personnel of construction
enterprises: refers to construction electricians,
construction scaffolding workers, construction lifting
signal cable workers, construction lifting machinery
drivers, construction lifting machinery installation
and disassembly workers, hoist basket installation
and disassembly workers, etc.
It can also be divided into ：
• Establish and improve the safety production responsibility
system and formulate complete safety production rules and
regulations: (1) (3) (7) (8) (9) (10) (11)
• Capital input to ensure the safe production conditions of the
Unit: (2)
• The relevant personnel have passed the examination by the
competent government departments: (4) (5) (6)
2 、 Application for safety production permit
– Before engaging in construction activities, construction enterprises
shall apply for production safety licenses according to law.
– Construction enterprises (group companies, head companies) un-
der the central administration shall apply to the competent con-
struction department under The State Council for a safety produc-
tion license;
– Other construction enterprises, including construction enterprises
under central administration, shall apply for production safety li-
censes from the competent construction departments of the peo-
ple's governments of provinces, autonomous regions and munici-
palities directly under the Central Government where the enter-
prises are registered.
• Materials for construction enterprises to apply for
safety production license include ：
– (1) Application form for safety production permit of con-
struction enterprise;
– (2) Business license of enterprise legal person;
– (3) Documents and materials related to the conditions of
production safety that should be met when applying for
the production safety license.
3 、 The validity period of the safety production permit
– According to the Regulations on Production Safety License, the va-
lidity period of production safety license is three years.
– Where the production safety license needs to be extended upon
expiration of its validity, the enterprise shall, three months prior to
the expiration of its validity, handle the extension formalities with
the original administration authority for issuing and administering
the production safety license.
– Within the validity period of the production safety license, an en-
terprise shall strictly abide by the laws and regulations related to
production safety and no death accident occurs. Upon expiration of
the term of validity of the production safety license, it shall not be
examined with the consent of the original issuing and administer-
ing authority of the production safety license, and the term of valid-
ity of the production safety license shall be extended for three
years.
4 、 Government supervision
– Where the issuing and administrative authority of the production safety license or the
administrative authority at a higher level finds one of the following circumstances, it may
revoke the issued production safety license ：

(1) The staff of the authority for the issue and administration of production safety
license abuses their power and neglects their duties to issue production safety
license;
(2) issuing safety production license beyond the statutory authority;
(3) Issuing production safety license in violation of legal procedures;
(4) Issuing safety production license to construction enterprises that do not meet
the conditions for safety production;
(5) Other circumstances under which the safety production license already issued
can be revoked according to law.
5 、 Legal liability for illegal acts
– (1) Legal liability for unauthorized construction activities without
obtaining the safety production permit
– (2) Legal liability for continuing construction activities without go-
ing through the extension formalities after the expiration of the
safety production license
– (3) Legal liability for the transfer of safety production license
– (4) Legal liability for obtaining safety license by improper means
– (5) Provisions on temporarily withholding production safety license
and rectification within a time limit
– (6) Legal liability for illegal acts of staff members of certification au-
thorities
5.2 Construction safety production respon-
sibility and education training system
1 、 The responsibility of the construction unit for production safety
– Basic policy: safety first, prevention first
(1) The principal person in charge of the construction unit shall be fully re-
sponsible for the work of production safety
-The Construction Law stipulates that the legal representative of a con-
struction enterprise shall be responsible for the safe production of the
enterprise.
-"Construction project safety production Management Regulations" also
provides that the main person in charge of the construction unit is fully
responsible for the safety work of the unit according to law.
(2) The responsibility of the work safety administration agency of the con-
struction unit and the full-time work safety administration personnel
-According to the Regulations on the Administration of Production Safety
in Construction Projects, the construction unit shall set up a production
safety administration agency with full-time production safety adminis-
tration personnel, who shall be responsible for on-site supervision and
inspection of production safety.
(3) Formulate production safety regulations and operating procedures

(4) To ensure the investment of funds required for safe production conditions
of the unit

– According to the Regulations on the Administration of Safe Produc-

tion of Construction Projects, the expenses for safe working envi-
ronment and safe construction measures included in the budget es-
timates of construction projects shall be used for the purchase and
updating of safety protective equipment and facilities, the imple-
mentation of safety construction measures and the improvement of
safety production conditions, and shall not be diverted for other
purposes.
2 、 The responsibility of the person in charge of the
construction project for production safety
(1) Responsible for the safe construction of construction projects;
(2) Implementing the production safety responsibility system, production
safety rules and regulations and operation procedures;
(3) Ensure the effective use of production safety expenses;
(4) Organize and formulate safe construction measures according to the
characteristics of the project to eliminate hidden dangers of safety
accidents;
(5) Timely and truthfully report production safety accidents 。
– The Regulations on the Administration of Production Safety in
Construction Projects also stipulate that, before the construction of
a construction project, the technical personnel in charge of project
management of the construction unit shall give detailed
explanations on the technical requirements related to safe
construction to the construction team and operators, and the two
parties shall sign for confirmation. (i.e. Disclosure system)
3 、 The responsibility of the general contractor and subcontractor for production safety
– The Construction Law stipulates that the construction enterprise shall be
responsible for the safety of construction site. In case of general contracting
for construction, the general contracting unit shall be responsible. The
subcontractor shall be responsible to the general contractor and obey the
general contractor's management of production safety at the construction
site. "Regulations on the Administration of Production Safety in
Construction Projects" further stipulates that the subcontractor shall bear
the main responsibility for production safety accidents caused by
disobedience to management.
– The Regulations on the Administration of Safe Production of Construction
Projects stipulate that the general contractor shall be responsible for
reporting the accident to the general contractor of the construction project.
– According to the Regulations on the Administration of Production Safety in
Construction Projects, the general contractor and subcontractor shall bear
joint and several liabilities for the production safety of subcontracted
projects.
4 、 The rights and obligations of construction personnel in production safety

“Seven rights and three Obligations" ：

– The right to know and propose construction
safety production
– The right to acquire construction safety
protective articles
– To criticize, report, prosecute, and deny violation
command
– Right of emergency right
– The right to insurance compensation for
accidental injury
– Claim civil damages
– The obligation to comply with laws and regulations
and use safety equipment correctly
– The obligation to receive education and training

obligation
on production safety
– The obligation to report potential safety accidents
• Any employee who finds any potential accident or other unsafe
factors shall immediately report to the on-site production man-
agement personnel or the person in charge of the unit.
5 、 Provisions on safety production education and training for construction man-
agement personnel and operators
（ 1 ） The assessment of three types of management personnel in construction units
– The ' Regulations on Safety Production Management of Construction Projects ' stipulates that the main
person in charge of the construction unit, the person in charge of the project, and the full-time safety pro -
duction management personnel shall be qualified by the construction administrative department or other
departments before serving.
(2 ) Conduct safety education and training for all staff at least once a year.
(3 ) Safety production education and training before entering new positions or new construction sites
(4 ) Safety production education and training before adopting new technology, new process, new equipment and
new materials
(5 ) Special operations personnel safety training assessment
– Special operators such as vertical transportation machinery operators, installa-
tion and disassembly workers, blasting operators, lifting signal workers, and
climbing and erection operators must undergo special safety operation training
in accordance with relevant state regulations. After obtaining a special operation
qualification certificate, they can start work.
（ 6 ） Fire safety education and training
• 3.Construction workers safety production self-protection awareness is not strong. Article
32 of the " Regulations on the Safety Production Management of Construction Projects "
stipulates that " operators have the right to criticize, report and accuse the safety
problems existing in the operating conditions, procedures and methods of operation on
the construction site, and have the right to refuse illegal command and order risky
operations. In the event of an emergency that endangers personal safety during
construction, the operator has the right to immediately stop the operation or take
necessary emergency measures to evacuate the dangerous area. In this case, the risky
operation of construction workers under the pressure of construction progress is also an
important cause of safety accidents.
• 4. The construction unit did not handle accident insurance. Article 38 of the " Regulations
on the Administration of Safety Production in Construction Projects " stipulates : " The
construction unit shall apply for accident injury insurance for personnel engaged in
dangerous operations on the construction site. The accident insurance premium is paid by
the construction unit. Accidental injury insurance is mandatory insurance, must be
handled in accordance with the law.
5.3 施工现场安全防护制度

1 、 Prepare safety technical measures and temporary power scheme of construction

site
-The " Regulations on the Administration of Safety Production in Construction Projects "
stipulates that construction units should prepare safety technical measures and
temporary power consumption plans on the construction site in the construction
organization design.
2 、 Preparation of special construction safety program
-The ' Regulations on Safety Production Management of Construction Projects '
stipulates that a special construction plan should be prepared for the following sub-
projects with a certain scale of high risk, and the safety checking results should be
attached. After the technical person in charge of the construction unit and the chief
supervision engineer sign the plan, the full-time safety production management
personnel will supervise the site : ( 1 ) foundation pit support and dewatering
project ; ( 2 ) earthwork excavation engineering ; ( 3 ) Formwork engineering ( 4 )
Hoisting engineering ( 5 ) Scaffolding engineering ( 6 ) Demolition and blasting
engineering ; ( 7 ) Other dangerous projects stipulated by the construction
administrative department of the State Council or other relevant departments.
-For the special construction schemes involving deep foundation pit, underground
excavation and high formwork engineering in the above listed projects, the
construction unit should also organize experts to demonstrate and review.
3 、 Safety protection regulations of construction site
– ( 1 ) Set safety warning signs in dangerous parts.
– ( 2 ) According to different construction stages and so on to take
corresponding safety construction measures.
– ( 3 ) Safety and health requirements of temporary facilities on con-
struction site
• Office, living area, work area
– （ 4 ） Safety protection measures around the construction site
• The construction site is enclosed : 2.5 m in the urban area and
1.8 m in the suburbs 。
– ( 5 ) Construction site safety management of dangerous operations
– ( 6 ) Safety management of safety protection equipment, mechanical
equipment, etc.
– ( 7 ) Construction hoisting machinery and equipment safety management.
• The use of leased machinery and equipment and construction equipment and
accessories, by the construction general contracting unit, subcontracting units,
rental units and installation units jointly acceptance.
5.4 Emergency rescue and investigation of
construction safety accidents
1 、 Classification standard of production safety accidents
– Special major accident : refers to the death of more than 30 people, or more
than 100 people seriously injured, or more than 100 million direct economic
losses of the accident ;
– major accident : it refers to the accident that causes more than 10 people
and less than 30 people to die, or more than 50 people and less than 100
people to be seriously injured, or more than 50 million yuan and less than
100 million direct economic losses ;
– large accident : refers to the death of more than 3 people and less than 10
people, or more than 10 people and less than 50 people seriously injured, or
more than 10 million yuan and less than 50 million yuan of direct economic
loss of the accident ;
– general accident : it refers to the accident that causes less than 3 people to
die, or less than 10 people to be seriously injured, or less than 10 million
yuan of direct economic loss.
Note : ' above ' includes this number, ' below ' does not
include this number.
2 、 Provisions of emergency rescue plan for construction safety acci-
dents
– The construction unit should monitor the parts and links prone to major ac-
cidents on the construction site according to the characteristics and scope
of the construction project, and formulate an emergency rescue plan for
production safety accidents on the construction site.
( 1 ) Compilation
( 2 ) Review
• The construction unit should organize experts to review the emergency plan
prepared by the unit. The review should form a written summary with a list of
experts.
（ 3 ） Recording
( 4 ) Training
( 5 ) Exercise
• At least one comprehensive emergency plan exercise or special emergency plan
exercise is organized every year, and at least one on-site treatment plan exercise is
organized every six months.
（ 6 ） revision
3 、 Accident Report and Supplement
– 'Production safety accident report and investigation and handling
regulations ' stipulates that after the accident, the relevant person-
nel at the accident site should immediately report to the person in
charge of the unit ; after receiving the report, the person in charge
of the unit shall report to the safety production supervision and
management department of the people 's government at or above
the county level and the relevant departments responsible for the
supervision and management of safety production within 1 hour.
– If there is a new situation after the accident report, it should be re-
ported in time. If the number of casualties caused by the accident
changes within 30 days from the date of the accident, it should be
reported in time. If the number of casualties caused by road traffic
accidents and fire accidents changes within 7 days from the date of
occurrence, it should be reported in time.
4 、 Accident investigation and handling
– The " Safety Production Law " stipulates that the investigation and
handling of accidents should be in accordance with the principles
of seeking truth from facts and respecting science, timely and
accurately find out the cause of the accident, find out the nature
and responsibility of the accident, summarize the lessons of the
accident, put forward rectification measures, and put forward
opinions on the handling of those responsible for the accident.
– Production safety accident report and investigation and handling
regulations 'provisions, especially major accidents by the State
Council or the State Council authorized the relevant departments to
organize accident investigation team to investigate ; major
accidents, major accidents and general accidents are investigated
by the provincial people 's government, the municipal people 's
government and the county people 's government respectively.
– The accident investigation team shall submit the accident investigation
report within 60 days from the date of the accident ; under special
circumstances, with the approval of the people 's government in charge of
accident investigation, the time limit for submitting an accident
investigation report may be appropriately extended, but the maximum
extension period shall not exceed 60 days.
– According to the " Regulations on Reporting, Investigation and Handling of
Work Safety Accidents, " the people 's government responsible for the
investigation of major accidents, major accidents and general accidents
shall make an approval within 15 days from the date of receiving the
accident investigation report ; for special major accidents, the approval
should be made within 30 days. In special cases, the approval time can be
extended appropriately, but the longest extension time is not more than 30
days.
– The handling of the accident shall be announced to the society by the
people 's government responsible for the accident investigation or the
relevant departments and agencies authorized by it, except for those that
should be kept confidential according to law.
5 、 Legal Liability for Illegal Acts
( 1 ) The legal liability of the illegal act of making emergency rescue plan for accidents
'Special Equipment Safety Supervision Regulations ', ' Production Safety Accident
Emergency Plan Management Measures '
( 2 ) the accident report and take corresponding measures illegal behavior should bear
the legal responsibility
'safety production law ', ' production safety accident report and investigation and
handling regulations ', ' special equipment safety supervision regulations ', '
occupational disease prevention law ', ' criminal law '
( 3 ) Legal liability for illegal acts in accident investigation
'Production safety accident report and investigation and handling regulations '
( 4 ) the accident responsibility unit and the main responsible person shall bear the
legal responsibility
'safety production law ', ' production safety accident report and investigation and
handling regulations '
5.5 建设单位和相关单位的建设工程安全责任制度

1 、 Safety responsibilities of construction units

( 1 ) Handle the relevant approval procedures according to law
( 2 ) Provide true, accurate and complete information to the construction unit.
( 3 ) shall not make illegal claims and arbitrary compression contract duration
( 4 ) The safety cost of construction project should be determined when compil-
ing the project budget.
( 5 ) shall not require the purchase, lease and use does not meet the require-
ments of safe construction equipment, etc.
( 6 ) When applying for construction permit, it should provide information about
safety construction measures.
-Recording
( 7 ) According to the law to implement decoration engineering and demolition
engineering
( 8 ) The legal responsibility of the construction unit should bear the illegal be-
havior
2 、 Safety responsibility related to survey and design units

• Safety responsibility of prospecting

units ：
– According to the " Regulations on the Administration of Safety in
Production of Construction Projects, " survey units should conduct
surveys in accordance with laws, regulations and mandatory stan-
dards for engineering construction, and the survey documents pro-
vided should be true and accurate to meet the needs of safety in
production of construction projects. In the survey operation, the
survey unit should strictly implement the operating procedures and
take measures to ensure the safety of various pipelines, facilities
• Safety responsibility of design unit ：
( 1 ) Design according to laws, regulations and mandatory stan-
dards of engineering construction.

( 2 ) Put forward the guidance and measures to prevent produc-

tion safety accidents.

( 3 ) take responsibility for the design results

– Design units and registered architects and other registered
practitioners should be responsible for their design.
– 'Who designs, who is responsible '
3 、 Safety responsibility of engineering supervision unit
( 1 ) to review the safety technical measures or special construction
scheme
( 2 ) Handle the hidden danger of construction safety accident according
to law.
– In the process of implementing supervision, if the engineering
supervision unit finds that there are hidden dangers of safety accidents,
it should require the construction unit to rectify ; if the situation is
serious, the construction unit should be required to suspend
construction temporarily and report to the construction unit in time. If
the construction unit refuses to rectify or stop the construction, the
engineering supervision unit shall report to the relevant competent
department in time.
( 3 ) To undertake the supervision responsibility of construction project
safety production
Chapter VI Construction Qual-
ity Legal System
■ 6.1 Engineering construction stan-
dards
■ 6.2 Quality responsibility and obli-
gation of construction unit
6.3 Quality responsibilities and obli-
gations of construction units and
related units
■ 6.4 Construction project comple-
tion acceptance system
■ 6.5 Construction project quality
warranty system
6.1 engineering and construction standards

1.Concept : Engineering construction standard refers to the best order in the field of
engineering construction, construction engineering survey, design, construction,
installation, acceptance, operation and maintenance and management activities
and results need to be coordinated and unified matters designated by the
common, reuse of technical basis and guidelines.
2. Classification of engineering construction standards
– National standard for engineering construction : unified technical
requirements nationwide.
– Engineering construction industry standard : there is no national standard, but
also need a unified technical requirements in a certain industry.
– Local standards for engineering construction : there is no national standard
and industry standard, and it is necessary to unify the safety and health
requirements of industrial products within the scope of provinces,
autonomous regions and municipalities.
– Engineering construction enterprise standard : the enterprise production of
products without national standards and industry standards 。
6.2 The quality responsibility and obligation
of the construction unit
1 、 Responsible for the construction quality and the quality
responsibility of the general contracting unit
– The construction law stipulates that construction enterprises are
responsible for the construction quality of the project.
– The " Construction Project Quality Management Regulations " further
stipulates that the construction unit should establish a quality responsibility
system to determine the project manager, technical person in charge and
construction management person in charge of the project.
– The " Construction Law " stipulates that if the construction project is
contracted by the general contractor, the project quality is responsible by
the general contractor. If the general contractor subcontracts the
construction project to other units, it shall bear joint and several liability for
the quality of the subcontracted project and the subcontracting unit.
Subcontractors should accept the quality management of the general
contractor.
2 、 In accordance with the provisions of the engineering design
drawings and construction technology standard construction
– According to the regulations on the quality management of
construction projects, the construction unit must construct
according to the engineering design drawings and construction
technical standards, and shall not modify the engineering design
without authorization and shall not cut corners. If the construction
unit finds that there are errors in the design documents and
drawings during the construction process, it should put forward
opinions and suggestions in time.
– Construction according to the drawing, comply with the standard
– Prevent errors in design documents and drawings
3 、 Provisions for inspection and testing of building materials and equipment
– The " Regulations on the Quality Management of Construction
Projects " stipulates that construction units must inspect building
materials, building components, equipment and commercial con-
crete in accordance with engineering design requirements, con-
struction technical standards and contract agreements. The inspec-
tion shall have a written record and a signature ; not tested or un-
qualified, shall not be used. ( Pre-entry inspection )
– The ' Construction Engineering Quality Management Regulations '
stipulates that construction personnel should take samples on site
under the supervision of construction units or engineering supervi-
sion units for test blocks, specimens and related materials involving
structural safety, and send them to quality inspection units with
corresponding qualification levels for testing. ( Witnessing sampling
)
• The following test blocks, specimens and materials must be subjected
to witness sampling and inspection ：
( 1 ) concrete test blocks for load-bearing structures ;
( 2 ) masonry mortar test blocks for load-bearing walls ;
( 3 ) Reinforcement and connection joint specimens for load-
bearing structures ;
( 4 ) Small brick and concrete blocks for load-bearing wall ;
( 5 ) Cement for mixing concrete and masonry mortar ;
( 6 ) Admixtures used in concrete for load-bearing structures ;
( 7 ) waterproof materials used in underground, roof and toilet ;
( 8 ) Other test blocks, specimens and materials that must be
witnessed and submitted for inspection are required by the
state.
4 、 Construction quality inspection and repair regulations
– 'Construction Project Quality Management Regulations ' stipulates
that the construction unit must establish and improve the
inspection system of construction quality, strict process
management, and do a good job in quality inspection and
recording of hidden projects. Before the concealed project is
concealed, the construction unit should notify the construction unit
and the construction project quality supervision institution.
– ( 1 ) Strict process quality inspection management
– ( 2 ) Strengthen the quality inspection of concealed works
– ( 3 ) Construction project repair
• The construction unit shall be responsible for repairing the
construction project with quality problems in construction or the
construction project with unqualified completion acceptance.
• Different from warranty ( warranty is after completion
acceptance ) 。
 6.3 Quality responsibilities and obligations of con-
struction units and related units
1 、 Quality responsibilities and obligations of the construction unit
( 1 ) Contracting projects according to law
The construction unit shall contract the project to the unit with the
corresponding qualification level ; the project limb shall not be dismantled
; according to law, bidding shall be conducted for the procurement of
survey, design, construction, supervision and important equipment and
materials related to engineering construction.
( 2 ) Provide original data to relevant units according to law.
The construction unit must provide the original data related to the
construction project to the relevant investigation, design, construction,
engineering supervision and other units. The data must be true, accurate
and complete.
( 3 ) Limiting unreasonable interventions
The construction project contracting unit shall not force the contractor to
bid at a price lower than the cost, and shall not arbitrarily compress the
reasonable construction period. It shall not express or imply that the
design unit or construction unit violates the mandatory standards of
engineering construction and reduces the quality of construction projects.
( 4 ) According to the law to review the construction drawing design documents
The construction unit shall submit the construction drawing design documents to the
construction administrative department of the people 's government at or above the
county level or other relevant departments for review. Construction drawing design
documents shall not be used without examination and approval.
( 5 ) Implement project supervision according to law
For the construction project under supervision, the construction unit shall entrust the
project supervision unit with the corresponding qualification level to carry out super-
vision, or may entrust the design unit of the project with the corresponding qualifica-
tion level of the project supervision and no subordinate relationship or other interests
with the construction contractor of the supervised project to carry out supervision.
( 6 ) Handling engineering quality supervision procedures according to law
( 7 ) According to the law to ensure that building materials meet the requirements
( 8 ) Decoration works according to law
( 9 ) The legal responsibility of the construction unit quality illegal behavior should bear
2 、 Quality responsibilities and obligations related to survey
and design units
( 1 ) Contract investigation and design business according to law
( 2 ) Survey and design must implement mandatory standards
( 3 ) The survey results provided by survey units must be true and ac-
curate.
( 4 ) Design basis and design depth
The design unit should design the construction project according to
the survey results.
( 5 ) According to the law to regulate the design of the selection of
building materials, etc.
( 6 ) Technical disclosure of design documents according to law
( 7 ) Participate in construction project quality accident analysis ac-
cording to law
( 8 ) The legal responsibility of the quality violation of the investiga-
tion and design unit.
3 、 Quality responsibilities and obligations related to engineering supervision units
– ( 1 ) undertake engineering supervision business according to law
– The project supervision unit shall undertake the project supervision
business within the scope of supervision permitted by its qualification
level. The project supervision unit shall not transfer the project
supervision business.
– ( 2 ) Avoidance of affiliation or other interests
– If the supervision unit of the project has a subordinate relationship or
other interest relationship with the construction contractor of the
supervised project and the supply unit of building materials, building
components and equipment, it shall not undertake the supervision
business of the construction project.
– ( 3 ) The basis of supervision work and supervision responsibility
– Basis : 1 laws and regulations ; 2 related technical standards ; 3
Construction project contract
– Supervision responsibility : 1 liability for breach of contract ; 2 Illegal
liability
– ( 4 ) Duties and authority of project supervision
– The ' Construction Project Quality Management Regulations ' stipulates
that the project supervision unit should select the competent chief
supervision engineer and supervision engineer to station at the
construction site.
– Without the signature of the supervision engineer, building materials,
building components and equipment shall not be used or installed in
the project, and the construction unit shall not carry out the
construction of the next process ; without the signature of the chief
supervision engineer, the construction unit does not pay the project
funds and does not carry out the completion acceptance.
– ( 5 ) The form of project supervision
– The ' Construction Project Quality Management Regulations ' stipulates
that the supervision engineer shall supervise the construction project in
the form of side station, inspection and parallel inspection according to
the requirements of the project supervision specification.
– ( 6 ) The legal responsibility of the project supervision unit for quality
violations shall bear
6.4 Construction project completion acceptance system

6.4.1 The subject and legal conditions of completion acceptance

– Main body : After receiving the completion acceptance report of
the construction project, the construction unit shall organize the
design, construction, engineering supervision and other relevant
units for completion acceptance.
– Conditions ：
( 1 ) Complete the construction project design and contract
content.
( 2 ) Have a complete technical file and construction management
information
( 3 ) An approach test report on the main building materials,
building components and equipment used in the project
( 4 ) Quality qualified documents signed by survey, design,
construction, engineering supervision and other units.
( 5 ) Engineering warranty signed by the construction unit
6.4.2 The file data that the construction unit
should submit
– The ' Construction Project Quality Management Regulations ' stipulates that the
construction unit should collect and sort out the documents of each link of the
construction project in a timely manner in strict accordance with the provisions of the
relevant national archives management, establish and improve the construction project
archives, and transfer the construction project archives to the construction administrative
department or other relevant departments in a timely manner after the completion and
acceptance of the construction project.
– According to the provisions of the " urban construction archives management regulations,
" the construction unit should submit a set of construction project files to the urban
construction archives within 3 months after the completion and acceptance of the project.
– The construction unit should formulate a unified catalogue according to the filing
requirements. If there are professional subcontracting projects, the subcontracting unit
should do a good job in sorting out the data according to the overall arrangement of the
general contracting unit, and finally review and summarize them by the general
contracting unit.
– The archives that the construction unit should generally submit are : ( 1 ) engineering and
technical archives ; ( 2 ) Engineering quality assurance data ; ( 3 ) Engineering inspection
and evaluation data ; ( 4 ) completion drawing, etc.
6.4.3 Provisions on acceptance of planning, fire protection, energy
conservation and environmental protection

– Planning : ' Urban and Rural Planning Law ' stipulates that the urban and rural
planning departments of local people 's governments at or above the county
level shall verify whether the construction project meets the planning condi-
tions in accordance with the provisions of the State Council. Without verifica-
tion or verification does not meet the planning conditions, the construction
unit shall not organize the completion acceptance. The construction unit shall
submit the relevant completion acceptance data to the urban and rural plan-
ning department within 6 months after the completion acceptance.
– Fire protection : ' Fire Law ' stipulates that in accordance with the national
technical standards for fire protection engineering construction, the construc-
tion project that needs fire protection design is completed, and fire protection
acceptance and filing are carried out in accordance with the following provi-
sions ：
• ( 1 ) For large crowded places and other special construction projects spec-
ified by the public security department of the State Council, the construc-
tion unit shall apply to the fire control institution of the public security or-
gan for fire control acceptance ;
• ( 2 ) Other construction projects, the construction unit should be reported
to the public security organs of fire agencies for the record after accep-
• Environmental protection : ' Construction Project Environmental Protection Regulations '
stipulates that after the completion of the construction project, the construction unit shall
apply to the environmental protection administrative department that approves the
Huangjing impact report, environmental impact report form or environmental impact
registration form of the construction project for the completion and acceptance of the
environmental protection facilities that need to be built for the construction project.
-The completion acceptance of environmental protection facilities shall be carried out
simultaneously with the completion acceptance of the main project. For the construction project
that needs trial production, the construction unit shall apply for the completion acceptance of
the environmental protection facilities that need to be built for the construction project within 3
months from the date of the trial production of the construction project.
• Energy conservation : ' Energy Conservation Law ' stipulates that construction departments
shall not approve the construction of construction projects that do not meet the building
energy conservation standards ; if the construction has been started, it should be ordered to
stop the construction and correct within the time limit ; what has been built shall not be sold
or used.
-The construction unit organizes the completion acceptance, and should check whether the civil
building meets the mandatory standards for energy efficiency of civil buildings ; for those who
do not meet the mandatory standards for civil building energy conservation, the completion
acceptance report shall not be issued.
6.4.4 The provisions of completion settlement and
quality dispute
1 、 Project completion settlement
( 1 ) Settlement method and compilation review
– The ' Interim Measures for the Settlement of Construction Project Prices ' stipulates
that after the completion of the project, the two parties shall settle the completion of
the project in accordance with the agreed contract price and contract price adjust-
ment content and claims.
– Project completion settlement is divided into unit project completion settlement, sin-
gle project completion settlement and construction project completion summary.
– The completion settlement of the unit project is compiled by the contractor and re-
viewed by the contractor ; the implementation of the general contracting project, pre-
pared by the specific contractor, on the basis of the general contractor review, the em-
ployer review.
– The completion settlement of a single project or the completion settlement of a con-
struction project is compiled by the general ( contractor ) contractor, and the contrac-
tor can directly conduct a review or entrust a project cost consulting agency with cor-
responding qualifications for review. Government investment projects are reviewed by
the financial department at the same level.
（ 2 ） review deadline
– After the completion of a single project, the contractor shall submit the
completion settlement report and complete settlement information to the
contractor while submitting the completion acceptance report.
– Time limit : ( 1 ) less than 5 million yuan, 20 days from the date of receiving
the completion settlement report and complete completion settlement data
; ( 2 ) 5 million to 20 million yuan : 30 days ; ( 3 ) 20 million yuan-50 million
yuan : 45 days ; ( 4 ) 50 million yuan or more : 60 days.
– The completion summary of the construction project is summarized within
15 days after the final single project completion settlement review is con-
firmed, and the review is completed within 30 days after sending the con-
tractor.
（ 3 ） Project completion price settlement
– The contractor pays the project completion settlement price to the
contractor according to the confirmed completion settlement re-
port, and retains about 5 % of the quality assurance ( warranty )
gold, which is liquidated after the expiration of the 1-year warranty
period for the project delivery ( if the contract otherwise stipulates,
it shall be agreed upon ).
– The completion settlement of the project is subject to the contract
period. The actual construction period is earlier or later than the
contract period. The contracting parties should implement the re-
wards and punishments agreed in the contract.
2 、 Treatment of quality dispute of completed project
– The ' Construction Project Quality Management Regulations '
stipulates that the construction unit shall be responsible for
repairing the construction project with quality problems in the
construction or the construction project with unqualified
completion acceptance.
( 1 ) Contractor responsibility
Article 11 of the Interpretation of the Supreme People 's Court on the
Application of Law in the Trial of Disputes over Construction Contracts
stipulates that if the quality of the construction project does not meet
the agreement due to the fault of the contractor, the contractor refuses
to repair, rework or reconstruct, and the employer requests to reduce
the payment of the project price, it shall be supported.
( 2 ) Contractor responsibility
The construction unit shall not, for any reason, require the architectural
design unit or the construction unit to violate the laws, administrative
regulations and building quality and safety standards in the engineering
design or construction operation, so as to reduce the engineering
quality. Otherwise, should bear the fault liability.
（ 3 ） Treatment principle of unauthorized use without completion acceptance

– Article 13 of the " Interpretation of the Supreme People 's Court on

the Application of Law in the Trial of Disputes over Construction
Contracts " stipulates that if the construction project has not been
completed and accepted, and the developer uses it without autho-
rization, and claims the right on the ground that the quality of the
part used does not meet the agreement, it will not be supported ;
however, the contractor shall bear civil liability for the quality of
foundation engineering and main structure within the reasonable
service life of the construction project.
6.4.5 Provisions on the Recording of Completion Acceptance
Report

– The ' Construction Project Quality Management Regulations ' stipulates that
the construction unit shall, within 15 days from the date of completion and
acceptance of the construction project, submit the construction project
completion acceptance report and planning, public security fire protection,
environmental protection and other departments to the construction admin-
istrative department or other relevant departments for record.
– Submitted documents : ( 1 ) project completion acceptance record form ; ( 2
) project completion acceptance report ; ( 3 ) the laws and administrative
regulations shall be issued by the planning, environmental protection and
other departments of the approval documents or approval documents ; ( 4 )
the legal provisions shall be issued by the public security fire department of
large crowded places and other special construction project acceptance of
qualified documents ; ( 5 ) Engineering quality warranty signed by the con-
struction unit ; ( 6 ) Other documents that must be provided by laws and
regulations.
6.5 Construction project quality warranty system

• The construction project quality warranty system : refers to the construction

project completion and acceptance, within the specified warranty period, due
to survey, design, construction, materials and other reasons caused by the qual-
ity defects, shall be responsible for the maintenance, rework or replacement by
the construction contractor, by the responsible unit is responsible for the legal
system of compensation for losses.
1 、 Submission time and main content of construction project
quality warranty
– The " Construction Project Quality Management Regulations " stip-
ulates that the construction project contractor shall issue a quality
warranty to the construction unit when submitting the project
completion acceptance report to the construction unit.
– Main content :
Quality warranty range
Quality warranty period
Promise quality warranty liability
2 、 The minimum warranty period of construction project
quality
– （ 1 ) Infrastructure engineering, building foundation engineering
and main structure engineering, which are the reasonable service
life of the project stipulated in the design documents ;
– ( 2 ) the roof waterproof engineering, waterproof requirements of
the bathroom, room and outer wall leakage prevention, for 5 years ;
– ( 3 ) Heating and cooling system, for two heating period, cooling
period ;
– ( 4 ) Electrical pipelines, water supply and drainage pipelines,
equipment installation and decoration works for 2 years.
– The warranty period of other projects is agreed by the employer
and the contractor.
169
3 、 construction project quality deposit
– Construction project quality margin ( warranty ) : refers to the contract
between the contractor and the contractor in the construction project
contract, from the payable project funds reserved to ensure that the
contractor in the defect liability period of the construction project defects in
the maintenance of funds.
– Liability period for defects : from the date of completion of the project
acceptance. Generally 6 months, 12 months or 24 months, specifically by the
contracting parties agreed in the contract.
– Reserved margin ratio : about 5 % of the total settlement of the project.
– Return of quality margin : after receiving the contractor 's application for
returning the margin, the employer shall verify with the contractor within 14
days in accordance with the contents of the contract. If there is no objection,
the employer shall return the bond to the contractor within 14 days after
verification.

170
4 、 Legal Liability for Illegal Acts
– The " Construction Law, " " Construction Project
Quality Management Regulations, " " Interim Mea-
sures for the Management of Construction Project
Quality Guarantee Funds, " and " Construction En-
terprise Qualification Management Regulations "
respectively stipulate the main legal responsibili-
ties of construction project quality warranty viola-
tions.

171