How to reduce the risk of arrears in engineering construction

If it cannot be provided, the construction party shall choose to provide physical mortgage (pledge).

In fact, the proportion of the balance payment of the simple contract in the whole project price is generally not very high.

Nowadays, many projects have been mortgaged by the owners, and the construction enterprises have won the lawsuit and can not implement it.

In the early stage of default, in addition to oral collection, we should be good at using the internationally accepted letter collection method (and make collection records).

The most prominent is that the serious arrears of project funds have led to the financial crisis of many enterprises, even on the verge of bankruptcy.

In fact, the risk of arrears of completed projects is great, and the completion settlement must be handled in time after completion.

The key to using legal means to prevent risk expansion and control the risk of project payment arrears is to control the process of project construction in progress.

It can be seen that construction enterprises must know themselves and the enemy and prevent risks in their business activities.

The reality is that the construction industry is an open and competitive industry.

It is also undeniable that construction enterprises have paid a heavy price in this process.

Special personnel shall be allocated to understand the developer’s investment subject, registered capital, land acquisition method, land price payment progress and source, capital channels during the construction period and bank loan conditions through multiple channels, and then comprehensively analyze its performance payment capacity and make a realistic judgment.

In case of temporary difficulties in funds, if the owner requires advance funds, the owner shall negotiate and require the construction party to provide a third-party credit guarantee for the owed funds.

It is an indisputable fact that construction enterprises compete for the contract right regardless of risk in order to survive and develop in the construction market.

Remember these ten items..

Solid Lifting Socket

It is worth thinking about whether there are ways to avoid or reduce this risk under the existing legal system and market conditions? How to obtain the maximum benefit with the minimum cost of capital risk? The author believes that construction enterprises themselves can make a difference in this regard.

Jump out of three misunderstandings and comprehensively prevent risks.

Even if state-owned enterprises face bankruptcy, the era of relying on the government or banks to save is gone.

According to Article 286 of the contract law, we should apply to the court to discount and buy the arrears, so as to obtain priority compensation~~ Malicious arrears of wages of 126 migrant workers, the boss of a construction labor company in Jiangxi was sentenced to save so much money by controlling costs? Have you learned how to make people? It’s not difficult to do a budget, but it’s not easy to do a good budget.

First, the project is in my hands anyway.

In case of no continuous demand or increasing arrears, the project under construction shall be analyzed in time and corresponding self-protection measures shall be taken.

I’m not afraid of your debt evasion.

The reality tells us that this kind of thinking set of planned economy is extremely dangerous; The second is to relax the settlement of the project funds with “government background”, and think that with the government as the background, the payment is only a matter of time.

According to international practice, the settlement cycle of deepening intermediate settlement of construction products is very long.

On the one hand, the project funds of each stage shall be settled in time according to the contract.

At the same time, the construction enterprise shall strive to reach a written agreement with the construction party on interest compensation for arrears of funds; In case of long-term arrears and failure to complete the relevant mortgage guarantee procedures, the trend of the construction party shall be tracked; The real estate development projects with large arrears should also lose no time to implement litigation preservation, so as to prevent them from mortgaging the construction project to a third party without the knowledge of the construction enterprise.

It is not uncommon for owners to deliberately restructure the bankruptcy and closure trap so that construction enterprises have no way to collect debts; Third, they think they are state-owned enterprises.

First, the construction progress shall be slowed down, and the construction shall be resolutely stopped if the follow-up funds are obviously not implemented.

Therefore, according to the estimation practice, it is particularly important to strengthen the intermediate settlement of project progress payment.

Disputes over cost often lead to the non implementation of arrears and claims, making the litigation of construction enterprises groundless.

Timely settlement of the project payment at each stage can greatly reduce the pressure of completion settlement; On the other hand, if the progress payment cannot be settled in the middle, the construction unit shall at least determine the amount of the project progress payment owed with the owner, which is beneficial to reducing the trouble of completion settlement and seeking legal support for the construction enterprise after contract disputes.

In particular, we should be more cautious about the conditions of advance construction, including extension of payment cycle and other disguised advance conditions in the contract or supplementary contract.

Do you not know that the investment relationship is complex today, and the government does not directly assume economic responsibility.

It has two meanings.

In addition, it should be noted that emphasizing the intermediate settlement of project progress payment does not mean that the completion settlement can be relaxed.

When they fall into the final dilemma, the government will always save them.

As a construction enterprise, first of all, we should collect and sort out the original vouchers, pay close attention to the settlement of the physical materials supplied by the construction party and the verification of the paid project funds, so as to create conditions for the completion settlement; Once the completion delay occurs, the responsibility system shall be implemented for clearing and urging, supplemented by reward, punishment and incentive measures for the assessment of the responsible person; For the long delayed and high-risk arrears, we should lose no time to put them into law.