Liquidity of construction enterprises (excluding fixed funds, only refers to monetary funds and funds occupied by reserved materials, tools and appliances. ) similar to blood in human body. Anemia is equivalent to the lack of funds in enterprises, and blood circulation disorders, such as thrombosis, can lead to local or overall obstacles and failure, and the consequences are self-evident. It is difficult for enterprises to use funds, the funds are sluggish, and it is difficult for enterprises to make ends meet. Keywords: liquidity of contracted projects can be mainly divided into self-owned liquidity (which should be the main component of liquidity) and non-owned liquidity. If the liquidity is insufficient, a large number of loans are equivalent to blood transfusion due to insufficient blood, which can only be an emergency, not a permanent cure. Not only will the loan interest cost increase sharply, but enterprises will suffer more and more damage if they have to pay the principal and interest on schedule in the future. I. Present situation: I have worked in a construction enterprise for many years, engaged in road and bridge construction, municipal engineering, housing construction, budget and settlement, and served as the head of the business department of a construction enterprise. Although I am not directly responsible for the use of funds in enterprises, I have more contacts with the work I am responsible for, so I have a certain degree of understanding. Most of the funds for roads, bridges and public buildings are financial input, and the source of funds can be said to be no problem. However, at present, many projects undertaken by construction and installation enterprises are non-financial investments, and the dilemma of their capital utilization is very serious. For the general staff of construction enterprises, it is impossible to fully understand the capital utilization of this enterprise and the construction enterprises in cities and counties of this province, and it is also impossible to fully understand the statistics of creditor's rights and debts of various construction enterprises. I'm afraid that even the competent authorities may not fully grasp this statistic, but we can see the whole picture from some phenomena. For example: 1, employees of a construction enterprise go to the financial department for reimbursement of medical expenses, which is stipulated by the enterprise to be reimbursed on a certain day of each month. On this day, many people arrived and lined up for reimbursement. Less than half of the money was received after completing the reimbursement procedures, and the money scheduled to be paid was reported. Those who were not reimbursed had to leave. 2. The engineer of a first-class construction enterprise used to be the section chief of a branch company, and was hospitalized because of cancer. As a rule, companies usually write checks to pay for medical expenses. According to family members, enterprises have difficulties and need to raise funds by themselves. After this person dies, he has to pay a lot of expenses. Although the enterprise promised to bear the prescribed proportion, it had to be solved by family members and relatives at that time. The enterprise stipulates that each reimbursement is limited and must be reimbursed by stages. According to this person's family, it will take several years for this expense to be reported. In the above two cases, some people may blame the construction enterprises for their care for employees. In fact, it is understood that these two construction companies have always been good to their employees, and they can also be said to be more concerned about their employees. Why is this happening? There are indeed practical difficulties. It is reported that many foreign construction workers and migrant workers work in construction enterprises in this province and city, and the wages they get on weekdays are only basic living expenses. By the Spring Festival, they can't get all the wages they deserve, so it is difficult for them to go home for the Spring Festival. Therefore, government intervention to order construction enterprises to pay workers' wages is a very effective administrative measure, which protects the legitimate rights and interests of workers. However, the project managers and contractors of the construction enterprises tried their best to raise funds everywhere, but they still failed to pay them all. They urged the employers to fail, which involved civil litigation. It is also useful to lock the doors of completed projects with big locks to force employers not to use or sell them. When it is difficult to raise cash immediately, there are also cases of borrowing from the private sector for emergency. 4. At present, there are many cases in which construction enterprises and their subordinate project departments default on payment for goods. Such as sand, steel, cement, other building decoration materials, installation engineering materials and equipment, etc. Sometimes the office of the project department can be described as crowded, and suppliers who ask for payment for materials and equipment can often be seen, and some also subcontract piling, well point drainage or waterproof works. Some are aggressive, and some tell their troubles with smiling faces in order to take care of future transactions. The situation is similar but different. According to some suppliers, there have been dozens of reminders, and some suppliers with insufficient retail funds have closed down because they owe people. The cases listed above are too numerous to mention, so I won't write them. Second, the main cause of the dilemma: Paragraph 1 of Article 12 of the Building Law of People's Republic of China (PRC) makes it clear that construction enterprises should have "registered capital that meets the requirements of the state", and Decree No.87 of the Ministry of Construction is more specific. And after the examination and approval of the competent department of construction and the registration of the administrative department for industry and commerce, all construction enterprises have indispensable registered capital. According to the engineering business volume they undertake, they can operate smoothly through hard work. So why do construction companies often find themselves in such a dilemma? The reason is well known. In a word, the main reason is that the employer fails to implement the 100% stipulated by relevant national, provincial and municipal laws and regulations, and some even knowingly commit crimes. Now, it is listed as follows: 1. The Employer shall, according to Article 18 of the Building Law of People's Republic of China (PRC), immediately allocate the project funds according to the contract. Some payment methods are vague, while others are clearly handled according to the documents of Hangcaiji (1998) No.714 and Zhecaiji (1998) No.54 or with reference to the above documents. However, in the bidding process (without the presence of the personnel of the bidding office) or in the secret agreement before or after, it is staggering whether the construction enterprises are forced to bring in funds (commonly known as capital contribution in this province) as a condition for winning the bid. Secret agreements, such as: some contracts are signed without paying a penny, and some agreements are completed until 0.000. Some projects include pile driver foundation and single-storey or double-storey basement, and the percentage of the total project cost varies with the number of floors of the main building. In short, the amount is huge; Some are paid after the main structure is completed and the building is capped, and the amount is larger; Some have seven floors, and the money will not be paid until the third floor is completed. It is unreasonable, illegal and "semi-compulsory" for the employer to ask the contractor for advance payment. Why can it be called semi-compulsory? Because the employer often takes the advance payment as the condition, the project will not be contracted to the construction enterprise without the advance payment. Avoiding the bidding office and the competent department, the two sides signed supplementary agreements in addition to the flawless contract to achieve the purpose of advance payment, and some even only verbally agreed without written basis. The so-called dependence on credit is not a one-off event, but a long-standing one. 2. Deposit At present, the so-called construction units in the construction market have to pay a deposit before signing the contract, which is generally not lower than 10% of the contract cost, and some indicate that the quality deposit is 5% and the construction period deposit is 5%. This situation has been going on for a long time. It seems to be a "reasonable norm", and it is unknown whether it has been recognized by the competent authorities of the industry. However, the bidding documents of provincial and municipal bidding offices have been required, which is actually unreasonable. Excuse me: (1) The employer requires to guarantee the construction period and quality. When bidding for the qualification examination of the construction unit, he was shortlisted because he was convinced of its reliability. The construction unit has a certificate approved by the construction department and a business license issued by the administrative department for industry and commerce. This is the most difficult to guarantee. What protection do you need? Is paying money the only reliable guarantee? What is the role of government approval? (2) As both parties to the contract have their own rights and obligations, Party A requires Party B to pay money to ensure the quality and construction period; Party B may also require Party A to pay immediately to ensure that the starting conditions are 100% and that no major design changes will affect the smooth progress of the construction. Ensure that the construction will not be abandoned halfway. When Party B pays the deposit, Party A shall also pay the deposit according to the principle of equal rights and obligations. (3) After the construction unit involuntarily pays a huge deposit, it is transferred by the employer. It is rumored that Zhejiang enterprises have paid the deposit in different places outside the province, and the employer has no news and cannot recover it, causing a lot of losses. This drawback should indeed be abolished. (4) Some people think that since both parties to the contract have to pay the deposit, they should not give it to one party and let the funds occupy it. Seemingly reasonable, it should be deposited in the special accounts of both parties, but in fact, it will make the working capital of the enterprise dull and cause great waste. (5) According to the statement of the older generation engaged in the construction industry in 1950s, in the planned economy period of earlier years, the amount of self-owned working capital of enterprises approved by the competent department of enterprises according to the annual workload was 6-9%, and normal production and operation can be guaranteed by accelerating turnover and rational use (as mentioned above, working capital is equivalent to human blood, and blood accounts for 7-8% of the total human body, which is just in line with the amount of self-owned working capital of enterprises). If a project is built, about 10% of the cost is delivered to Party A or stored in a special account, isn't it necessary to withdraw the working capital? How can a person live without blood? 3. The problem of arrears in project payment has a long history. As mentioned earlier, there are not a few construction enterprises that have received millions or tens of millions of project funds. Similar to the two problems mentioned above, it is almost a cancer of construction enterprises. As early as1May 9, 1994, the Ministry of Construction, the State Planning Commission, the State Economic and Trade Commission and the People's Construction Bank of China jointly issued Jian [1994] No.279 "Notice on Further Doing a Good Job in Clearing the Arrears of Project Funds and Preventing New Debts". Various localities have also made forwarding and supplementation, but the effect is not great. So far, the old debts are not new, and the debts continue to increase. 3. Opinions on solving difficulties: The above three problems can be said to be the main problems of capital utilization and turnover of construction enterprises at present. The unreasonable and illegal requirements of the project developers have seriously disturbed the order of the construction market. Article 1 of the Construction Law clearly stipulates that "this Law is formulated in order to strengthen the supervision and management of construction activities, maintain the order of the construction market, ensure the quality and safety of construction projects, and promote the healthy development of the construction industry", and Article 18 clearly stipulates that "the contractor shall immediately allocate the project funds in accordance with the provisions of the contract". The contract referred to here is a contract signed in accordance with the Contract Law of People's Republic of China (PRC), and there should be no more or less "coercive" prepayment clauses; As for the payment of project funds, Document No.54 has clearly stipulated that whether the deposit should be paid must be determined by the competent department. The above-mentioned documents No.37 and No.29 not only clarified right and wrong, but also put forward effective measures, but the effect was not great. The author puts forward several points for reference: 1. On the issue of advance payment, the competent department of industry should issue a document or explicitly prohibit it through the arrangement of the meeting. The Employer shall not require the Contractor to make an advance payment, and shall not invite the so-called "karate" with no funds or insufficient funds and no reliable source of follow-up funds to bid and start construction. The contractor shall not pay the advance payment in the supplementary agreement signed with the employer in the contract or privately for obtaining the construction business. Once found, both sides will be severely punished. Anyone who has information will be rewarded, and regulations on rewards and punishments will be formulated. 2. Regarding the deposit, the competent department shall issue a document or determine whether the meeting arrangement is legal and reasonable. If it is not feasible, it should be explicitly prohibited, and the rewards and punishments are the same as above. 3. Regarding the problem of arrears in project payment, (1) the competent department of industry should instruct the Tendering Office to review its capital storage during the project bidding process. If all the funds are not in place, the plan and possibility of its subsequent funding sources should be reviewed, otherwise the bidding procedures will not be handled; If the employer fails to perform the payment terms of the contract, the administrative department for industry and commerce should strengthen contract arbitration and urge it to perform the contract. (2) The construction enterprise shall designate a special person to handle the withdrawal of old and new funds. If there is any dispute over the project price, the different nature of the dispute shall be listed item by item, and both parties shall ask the cost management station and the quality supervision station to make a ruling. If they are not satisfied with the ruling, they can bring a lawsuit to the court. This paper mainly tries to alleviate the dilemma of capital utilization of construction enterprises and promote the healthy development of construction industry. All units and individuals related to construction enterprises are deeply affected by the existence and proliferation of the above problems, such as project operators (especially migrant workers, which have attracted great attention from local governments), materials and equipment suppliers, transporters and so on. This not only affects their production and operation, but also affects their lives sometimes. The construction unit borrowed money from banks and private individuals and paid interest for no reason, which increased the burden on enterprises and affected the progress and quality of the project to a certain extent. It is the necessary link of "strengthening the supervision and management of construction activities and maintaining the order of the construction market" pointed out in the first article of the Building Law of People's Republic of China (PRC), so it is urgent to completely solve the above problems.
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