Second, settle accounts according to the project progress.
With regard to the settlement cycle, all localities mainly adopt two methods: one is to settle according to the measurement cycle agreed in the construction contract.
On September 23, 2020, the official website of the Ministry of housing and urban rural development issued the notice on implementing the primary responsibility for project quality of the construction unit, strictly implementing the primary responsibility for project quality of the construction unit.
So far, more than 20 provinces, cities and autonomous regions have followed up and issued documents.
On December 14, 2020, Jiangxi Provincial Department of housing and urban rural development issued a notice, printing and distributing the implementation opinions on promoting construction process settlement in housing construction and municipal infrastructure projects, which shall come into force as of the date below..
According to the Interim Measures for settlement of construction project price, the settlement scope of construction project price includes project advance payment, project progress payment and project completion price settlement.
As for price payment, in terms of price payment, all localities generally emphasize the timeliness of settlement audit in the construction process, and make it clear that the employer’s overdue audit is recognized.
According to the main characteristics and construction period of the construction project, it is divided according to the main structure, divisional works or construction period (month, quarter, year, etc.).
If there is no agreement on the handling time limit of settlement in the construction process in the contract, the time limit is 28 days.
The construction unit shall have financial arrangements to meet the construction needs, and provide the construction unit with project payment guarantee.
Other: original link: http://zjt.qinghai.gov.cn/html/132/37586.html2 Xinjiang original link: http://zjt.xinjiang.gov.cn/xjjs/gczj/202108/d448133a906b485d80bcf90a81a385ce.shtml3 On April 8, 2021, Shaanxi Province issued the notice on settlement during construction of housing construction and municipal infrastructure projects.
The so-called construction process settlement refers to the calculation, adjustment, confirmation and payment of the project price for the project contents (including on-site visa, project change, claim, etc.) completed within the agreed settlement period (time or progress node) according to the construction contract.
Government investment projects shall not be funded by the construction unit.
When the divisional works are accepted, in principle, the project payment settlement shall be completed simultaneously, and the settlement shall not be delayed in disguised form for reasons such as design change and project negotiation.
For example, Zhejiang Province, Sichuan Province and Chongqing require the employer to pay the project progress payment in full according to the contract.
I think it is appropriate to set the payment ratio between 80% and 90% in various places.” goodbye, completion settlement! The era of settlement in the construction process is coming! At the executive meeting of the State Council at the beginning of 2020, it was clearly required to comprehensively implement process settlement in the field of engineering construction and strengthen the promotion of letter of guarantee instead of deposit of construction unit.
Compared with completion settlement, the implementation of construction process settlement is mainly used to standardize construction contract management, avoid disputes between the employer and the contractor, save audit costs, effectively solve the “settlement difficulty” and prevent migrant workers from being paid in arrears from the source.
The employer shall pay the settlement price during the construction process according to the procedures, time limit and proportion agreed in the contract.
In July 2020, the Ministry of housing and urban rural development issued the work plan for project cost reform, which made it clear: strengthen the supervision of project construction contract performance and price payment, guide the employer and the contractor to carry out project payment and settlement in strict accordance with the contract, and fully implement the price settlement and payment in the construction process.
As early as 2016, the opinions of the general office of the State Council on comprehensively tackling the wage arrears of migrant workers It is the first time to clearly require the full implementation of construction process settlement; In 2017, the Ministry of housing and urban rural development In the opinions on strengthening and improving project cost supervision, it is again proposed to implement the project price settlement system in the construction process; On December 24, 2019, the Ministry of housing and urban rural development issued the guiding opinions on Further Strengthening the supervision of bidding and tendering of housing construction and municipal infrastructure projects, which proposed to strictly enforce the management of contract performance and project changes, strengthen the management of project progress payment and project settlement, and the tenderee shall not take the unfinished audit as the reason for delaying project settlement and defaulting on project payment.
Government invested projects shall ensure that the funds are paid in place on time in accordance with the relevant provisions of the state, and the unfinished audit shall not be used as a reason for delaying the settlement of project funds.
Fully implement the project payment guarantee system to prevent project payment arrears.
Original link: https://js.shaanxi.gov.cn/zcfagui/2021/4/112425.shtml4 On March 16, 2021, Jilin Provincial Department of housing and urban rural development issued the implementation opinions on promoting construction process settlement in housing construction and municipal infrastructure projects.
▲ all provinces across the country promote the settlement documents in the construction process.
The employer and the contractor can organize or entrust qualified project cost consulting units to compile and review the construction process settlement.
The Ministry of housing and urban rural development has repeatedly proposed the full implementation of price settlement and payment in the construction process.
In addition, Gansu Province and Shanxi Province also proposed that the settlement cycle should not exceed 3 months, further limiting the settlement time.
For more information, please pay attention to the historical news.
If the employer fails to pay according to the time agreed in the contract, it shall bear the liability for breach of contract according to the contract.
The employer shall, within the time limit agreed in the contract, pay the settlement payment for the construction process in the proportion agreed in the contract, and the payment proportion of the settlement payment for the construction process shall be more than 80%.
The settlement of the construction process shall be implemented for the housing construction and municipal infrastructure projects and their ancillary facilities, as well as the supporting lines, pipelines and equipment installation projects newly started and with a construction contract construction period of more than one year.
The government and state-owned investment projects shall not refuse or delay the process settlement and project payment on the grounds that the Completion Final Accounts audit has not been completed.
At the same time, it is proposed to promote the settlement of construction process.
The national Standing Committee clearly requires the full implementation of process settlement in the field of engineering construction.
The construction contract shall specify the settlement period of the construction process and the settlement method of the project progress payment.
The settlement period of the construction process can be divided according to the construction time period or the construction image progress node.
The construction process settlement shall be measured and priced for the qualified project according to the contract, the non controversial part shall be settled in the construction process on schedule, and the controversial part shall be handled according to the dispute resolution method agreed in the contract.
After soliciting opinions previously, on October 26, 2021, Qinghai Provincial Department of housing and urban rural development officially issued the implementation opinions on promoting construction process settlement in housing construction and municipal infrastructure projects, which will be officially implemented as of December 1, 2021.
This method is adopted in Guangdong Province, Chongqing and other places.
The documents issued by all provinces are as follows: 1.
In order to reflect the guarantee of payment to the construction unit, all localities have also stipulated the minimum payment proportion of progress payment.
Original link: http://jst.jl.gov.cn/gczj/wjxx/202103/t20210316_ 7968693.html5.
Shanxi Province and Gansu Province require that the proportion of progress payment agreed in the contract shall not be less than 80%; The employer shall pay the progress payment to the contractor at not less than 75% of the project price and not more than 90% of the project price; As for the different payment ratios in different provinces, Wu zuomin, executive deputy director of the expert committee of China Construction Project Cost Management Association and director of Beijing Guanghui innovation and research technology center, said: “the construction of construction projects is labor-intensive, with low profit margin and lower capital turnover rate.
Mainly according to the provisions of the Interim Measures for settlement of construction project price, it is divided into monthly settlement and payment and sectional settlement and payment, which is adopted in Gansu Province, Shanxi Province and other places.
