Building materials prices soar! Is the construction company fully responsible for the risks? Many provinces and cities are clear: we should adjust the price difference and sign a supplementary agreement!

Source: Centennial construction network, local housing construction departments recently, the prices of steel, cement, dry mortar and other building materials used in construction projects continue to rise

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On May 10, steel broke the 6000 yuan mark

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How to bear the risk of the construction unit when the price of building materials rises? Shanghai: the market price of building materials increased by 350 yuan in the morning; Beijing: the market price of building materials rose 420 in the morning; Hangzhou: the market price of building materials rose by 350 in the morning

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The prices in Shanghai and Guangdong are temporarily stable

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Prices in Guangdong and Shanghai are temporarily stable; Yunnan: Baoshan region, some brands of bagged cement notice increased 30 yuan / ton; Sichuan: the market quotation of mainstream brand cement in Ganzi Prefecture increased slightly by 30 yuan / ton, and the price of cement in Demian Prefecture is expected to rise by 30 yuan / ton from the 15th; In Hebei Province, the market quotation of mainstream brand cement in Chengde increased by 50 yuan / ton, while that of mainstream brand cement in Shijiazhuang increased by 40 yuan / ton; Shandong: the market quotation of mainstream brand cement in Weihai area increased by 10-20 yuan / ton; Fujian: the quoted price of cement market in Nanping increased by 30 yuan / ton

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Prices in Shenzhen and Shanghai are temporarily stable; Chongqing: the price of sand and stone in Chongqing increased by 2 yuan / ton; Fujian: the price of sand and stone in Quanzhou increased by 2-5 yuan / ton

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Northwest: the price in this area is 67 yuan / ton higher than yesterday; East China: the price in this area is 51 yuan / ton higher than yesterday; Northeast: the price in this area is 50 yuan / ton higher than yesterday; North China: the price in this area is 49 yuan / ton higher than yesterday

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East China: the low and high standard prices in the region increased by 100 yuan / ton respectively compared with yesterday; Southwest: the price of low standard and high standard in this area increased by 100 yuan / ton respectively compared with yesterday; South China: the low standard price in this region increased by 100 yuan / ton compared with yesterday, while the high standard price increased by 50 yuan / ton compared with yesterday; Northeast: the low standard price in this region increased by 100 yuan / ton compared with yesterday; Shandong: the high standard price in this area is 50 yuan / ton higher than yesterday

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The prices in Shanghai and Guangdong are temporarily stable; Henan: the price of slag powder in Zhengzhou increased by 15 yuan / ton; Shanxi: the price of mainstream brand slag powder in Jincheng area increased by 15 yuan; Chongqing: the price of slag powder in Chongqing increased by 10 yuan / ton

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The prices in Shanghai, Hangzhou and Nanjing were 40 yuan / m3 higher than yesterday

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Daily rent prices in Shanghai, Hangzhou and Nanjing are temporarily stable

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The prices in Shanghai and Hangzhou are temporarily stable

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On May 10, the absolute price index of myspic rebar was 6234.00, up 8.59% on a day-on-day basis

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The average price of hrb400e (20mm) rebar in 31 major cities in China was 6274 yuan / ton, up 507 yuan / ton

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Key cities: Beijing 6290 yuan / ton, up 490 yuan / ton; Shanghai was 6120 yuan / ton, up 440 yuan / ton; Guangzhou was 6250 yuan / ton, up 470 yuan / ton; Xi’an was 6180 yuan / ton, up 500 yuan / ton

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On May 10, the cement price index was 512.48, down 0.2% on a day-on-day basis

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The average price of P.O42.5 bulk cement in 26 major cities in China was 468 yuan / ton, down 2 yuan / ton from the previous trading day

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Key cities: Beijing 480-500 yuan / ton; Shanghai 575-626 yuan / ton; Guangzhou 540-560 yuan / ton; Xian 420-430 yuan / ton

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The concrete price index on May 10 was 463.92, down 0.13% on a day-on-day basis

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The average price of C30 cash and non pump in 34 major cities in China was 439 yuan / m3, down 1 yuan / m3 from the previous trading day

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Key cities: Beijing 435-455 yuan / m3; Shanghai 500-520 yuan / m3; Guangzhou 610-630 yuan / m3; Xi’an 490-510 yuan / m3

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The average price of sand and stone on May 10 was 114 yuan / ton, which was flat on a day on month basis

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Market quotation of mainstream sand and stone in key cities of China: Shanghai natural sand 159 yuan / ton, machine-made sand 133 yuan / ton, gravel 121 yuan / ton; Guangzhou natural sand 177 yuan / ton, machine-made sand 137 yuan / ton, gravel 125 yuan / ton; Xi’an natural sand 125 yuan / T, machine-made sand 105 yuan / T, gravel 100 yuan / T

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Relevant regulations are as follows: in December 2019, the Ministry of housing and urban rural development and the national development and Reform Commission jointly issued the “management measures for general contracting of housing construction and municipal infrastructure projects”, which will come into force on March 1, 2020

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The “measures” clearly stipulates that the construction unit shall bear the risk of the part where the fluctuation range of the prices of main engineering materials, equipment and labor exceeds the range agreed in the contract when compared with the base price at the time of bidding

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Article 15   Construction units and general contractors shall strengthen risk management and share risks reasonably

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The risks undertaken by the construction unit mainly include: (1) the price of main engineering materials, equipment and labor fluctuates more than that agreed in the contract when compared with the base price at the time of bidding( 2) The change of contract price caused by the change of national laws, regulations and policies( 3) Changes of project cost and construction period caused by unforeseen geological conditions( 4) The change of project cost and construction period due to the construction unit( 5) Change of project cost and construction period caused by force majeure

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The specific content of risk sharing shall be agreed by both parties in the contract

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Construction units and general contractors are encouraged to use insurance means to enhance their risk prevention ability

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02 as early as 2007 and 2008, due to the continuous and significant price fluctuation of labor, materials and machine shift, many provinces in China have issued documents to make clear provisions on the issue that “the contractor is not clearly or forcibly agreed in the contract to bear all risks”, requiring both parties to sign a supplementary agreement and adjust the price difference

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In the measures for the administration of contract awarding and contract pricing of construction projects (Order No

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16 of the Ministry of housing and urban rural development of the people’s Republic of China), there are the following provisions: Article 3 Contract awarding and contract pricing of construction projects are formed by market competition under the macro-control of the government

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The valuation of project contract shall follow the principles of fairness, legality and good faith

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Article 13 when determining the contract price, both parties shall take into account the impact of market environment and price changes of production factors on the contract price

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In recent years, many places have also issued documents on the rising prices of building materials, demanding to safeguard the rights of construction enterprises

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Guidance of Guangdong Provincial Department of housing and urban rural development on strengthening the price risk control of construction materials yjsh [2018] No

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2058 competent departments of housing and urban rural construction in cities above prefecture level, all relevant units: since this year, due to the influence of macro policy and increased infrastructure investment, the price of construction materials in Guangdong Province has fluctuated abnormally, such as sand, cement, mortar, cement, mortar, etc The price of concrete has increased to varying degrees, which is beyond the scope and risk that both parties can foresee, seriously affects the normal performance of the construction contract, and brings potential quality and safety hazards to the project construction

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In order to stabilize the order of the construction market, reasonably reduce the risk caused by the abnormal fluctuation of the price of construction materials, and earnestly safeguard the legitimate rights and interests of both parties, According to the contract law of the people’s Republic of China, the administrative measures for contract awarding and contract pricing of construction projects (Order No

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16 of the Ministry of housing and urban rural development) and the administrative provisions for construction project cost of Guangdong Province (Order No

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205 of the Guangdong government), combined with the actual situation of our province, and based on the principle of seeking truth from facts and sharing risks, the following guiding opinions are put forward, which are earnestly implemented.

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