How to control the legal risk of advance payment in construction enterprises

I. Hunan Province

On May 28th, 2020, the Housing and Construction Department of Hunan Province issued the "Implementation Opinions (Draft for Comment) on Implementing Construction Process Settlement in Housing Construction and Municipal Infrastructure Projects", which fully implemented construction process settlement in housing construction and municipal projects in the province.

1

If the settlement period in the construction process is not stipulated in the contract, the period is 28 days.

2

After the settlement documents of the construction process are signed and approved by both parties to the contract, as part of the completion settlement documents, the employer shall submit them to the competent construction department for the record. For projects that have not been completed and settled for the record, the relevant departments shall not register property rights.

three

The Employer shall pay the process settlement money in the agreed proportion. If the payment ratio is not agreed, the payment ratio can be determined between 80% and 90% by signing a supplementary agreement.

Second, Zhejiang Province

On May 20th, 2020, the Housing and Construction Department of Zhejiang Province issued the "Implementation Opinions on Implementing Construction Process Settlement in Housing Construction and Municipal Infrastructure Projects": From June 20th, the construction process settlement will be fully implemented in housing construction and municipal projects in the whole province.

1

It is suitable for new housing and municipal projects that can be settled in real time in sections in the province. Focus on the promotion and demonstration of government investment projects and newly started projects with a contract term of 18 months or more.

2

Unless otherwise agreed in the contract, if the settlement of the construction process involves labor and material replenishment, it can be implemented with reference to the current guiding pricing basis in this province, and the replenishment time is consistent with the node cycle. During the performance of the contract, if the contract price adjustment is involved, a supplementary agreement shall be signed, and the price settlement shall be handled simultaneously in the current process settlement; Any omission, increase or decrease or calculation deviation in the bill of quantities shall be calculated according to the contract and paid in the settlement process.

three

The construction unit shall prepare the corresponding settlement report according to the settlement cycle and submit it to the construction unit. If there is no agreement or unclear agreement on the time limit for reply, it shall be determined according to 28 working days.

four

If the project cannot be completed and accepted on schedule due to the reasons of the construction unit, the project will automatically enter the defect liability period after 90 days from the date when the construction unit submits the completion acceptance report.

Third, Sichuan Province.

On June 22, 2020, 65438+ Sichuan issued a document, saying that the new construction projects with a contract period of more than two years in the province's housing construction and municipal infrastructure projects should actively implement construction process settlement. It will be implemented from March 1 day, 2020, with a validity period of 5 years.

1

The employer shall not delay the settlement of the project schedule on the grounds that the audit is not completed, thus delaying the settlement and payment of the project funds.

2

The settlement nodes in the construction process are divided according to the main structure of the project, sub-projects or construction period.

three

The allocation period of labor costs shall be stipulated separately in the bidding documents and the construction contract.

four

The construction contract clearly stipulates the settlement node in the construction process, the detailed scope of installment settlement in the construction process, the measurement and pricing method, the settlement of measurement and pricing disputes, the risk scope, the acceptance requirements, and the payment procedure, time, proportion, and overdue payment treatment.

Fourth, Guangdong Province.

On June 3, 20 19, the Housing and Construction Department of Guangdong Province issued a notice to promote the settlement of housing construction and municipal infrastructure projects in the province.

1

For projects with settlement in the construction process, the procedures can be simplified and the frequency of spot checks can be reduced during administrative examination and approval, daily inspection and special inspection.

2

For projects that have already started, the contracting parties may sign supplementary agreements through consultation. The settlement document of construction process confirmed by both parties to the contract is one of the settlement documents for completion.

three

If the audit is not completed within the time limit due to the employer's reasons, it can be regarded as the construction process settlement report submitted by the employer according to the contract and approved by the contractor.

four

If the employer fails to pay the settlement funds for the construction process or completion within the agreed time limit, and fails to reach an agreement on deferred payment, he may contract the project at a discount by mortgage payment, or apply to the people's court for auction of the project according to law.

Verb (abbreviation of verb) Beijing

201910/7 The Beijing Municipal Commission of Housing and Urban-Rural Development issued the Notice on Implementing the Relevant Requirements for Settlement and Payment of Project Funds for Housing Construction and Municipal Infrastructure Construction Units, which clearly pointed out that:

1

It is strictly forbidden to default on the project payment. The construction unit that is found to be in arrears with the project payment by the people's court shall be included in the "blacklist" of the construction market, and its new project construction shall not be approved. Belonging to government investment projects, the construction unit shall not be required to carry out construction by means of contract with capital.

2

Full implementation of construction process settlement, settlement according to the measurement period or project schedule agreed in the construction contract, and payment of project funds.

Intransitive verb Chongqing

On February 20, 20 18, the Chongqing Municipal Commission of Housing and Urban-Rural Development issued the Notice on Implementing Construction Process Settlement in the Construction Field, requiring that the construction process settlement be implemented for new projects with a construction period of more than two years.

1

In the bidding documents and construction contracts, the settlement period and pricing method, as well as the payment time, procedures, methods and payment ceiling in the construction process are clearly defined.

2

Settlement data of construction process: including (but not limited to) construction contract, supplementary agreement, tender documents, construction drawing, construction scheme, confirmed engineering change, site visa and engineering claim.

three

Projects that implement process settlement will be given policy support in the process of handling wage guarantee (bank guarantee) and pre-sale funds for migrant workers.

Seven. Shanxi province

On March 22nd, 20 19, the Notice of Shanxi Provincial Department of Housing and Urban-Rural Development, Shanxi Provincial Development and Reform Commission and Shanxi Provincial Department of Finance (No.57) (hereinafter referred to as the "Notice") was issued, and construction process settlement will be implemented in housing construction and municipal engineering from May 1 9.

1

Housing construction, municipal engineering and its ancillary facilities and their supporting lines, pipelines and equipment installation projects with a construction contract term of more than one year (including one year) shall be settled in the construction process.

2

If the Employer fails to pay the progress payment and the completion settlement payment, it shall not only bear the liability for breach of contract, but also pay interest at the interest rate agreed in the contract; If there is no agreement, the interest shall be paid according to the interest rate of similar loans published by the People's Bank of China in the same period.

three

If the Employer fails to complete the settlement of the construction process as required, it shall not organize the completion acceptance and shall not be put into use; For the employer who delays the project settlement for a long time and defaults on the project payment, the relevant departments shall not approve the start of new projects.

four

If it is difficult for contracting, contracting, bidding agency, supervision, cost consultation (including financial review) and other units to implement settlement due to illegal acts in the construction process, the relevant functional departments should deal with it seriously according to the law and regulations, and the results will be announced through the Shanxi Credit Information Sharing Platform.