How to determine the loss compensation when the construction contract of the construction project is invalid?

The contractor should be liable for the overdue completion of the project, which leads to the employer’s overdue delivery of the house and compensation to the third party.

and Yankuang Donghua Construction Co., Ltd.: the bidding activity of the construction project is the bidding carried out after the project development unit and the construction unit are determined, which belongs to the act of collusion and violates the mandatory provisions of the bidding law, The construction contract signed by both parties shall be deemed invalid.

Case No.: (2017) Supreme Court of justice No.

The construction agreement is invalid, and the agreed liquidated damages clause is invalid, so liquidated damages cannot be claimed accordingly.

If the party is not given the right to claim compensation, it will inevitably lead to the possibility of the other party using its illegal acts to obtain improper benefits.

Case No.: (2017) Supreme Court of justice No.

The “construction contract of construction project” signed after winning the bid shall also be deemed invalid.

How to determine the loss compensation after the contract is invalid in the dispute of construction contract? This issue of the legal letter discusses the determination of loss compensation in construction contract disputes based on specific cases and relevant views in judicial practice for readers’ reference.

when the construction contract of the construction project is invalid and the actual loss cannot be confirmed, the size of the loss can be determined by referring to the way agreed in the contract, “there is loss and relief”..

and Shijiazhuang Yingjia real Estate Development Co., Ltd.: the bidding project must be carried out, and the construction agreement signed without bidding is an invalid contract.

Case No.: (2019) Supreme People’s Court of trial No.

Loop Box

For the loss caused by the delay of construction period, if both parties are responsible for the delayed delivery of the project, the constructor shall compensate the actual loss caused to the employer by the delay of delivery of the house due to its reasons.

Case No.: (2015) suminzhong Zi No.

The contractor should compensate for the losses caused by the employer’s late delivery of the house and compensation to the third party caused by the late completion – the essence of the construction contract dispute case of the construction project of hiseas Construction Engineering (Group) Co., Ltd.

on the dispute over the construction contract of the construction project: in the case that the parties have multiple construction contracts and are invalid, generally, the contract that conforms to the true intention of the parties and is actually performed should be referred to as the basis for the settlement of the project price; When the actual performance of the contract cannot be determined, the losses can be reasonably allocated according to the price difference between the two disputed contracts, combined with the project quality, the fault of the parties, the principle of good faith, etc.

The court may determine the amount of compensation at its discretion in combination with the fact that the construction period is delayed and the evidence provided by the employer, taking into account the degree of responsibility of both parties.

00394 trial court: Jiangsu Higher People’s court case source: selected judicial opinions of Faxin I.

and Fuyang Juchuan real estate Development Co., Ltd.: the case involves the invalidity of the construction contract of the construction project, and the party concerned should no longer claim the liability for breach of contract, but still has the right to request the opposite party to bear the liability for compensation for losses.

Since there is indeed the fact of late completion, and the liquidated damages have the function of filling the losses, from the perspective of reducing the litigation burden of the parties and effectively resolving disputes, the court may determine the losses caused by the Contractor’s late completion by referring to the standard of liquidated damages agreed in the contract when the parties fail to submit effective evidence to prove that it is obviously inappropriate to calculate the losses caused by the late completion by referring to the standard of liquidated damages agreed in the contract.

Tangshan Changlong Real Estate Development Co., Ltd.

v.

If actual losses are caused to the employer due to late delivery of the project, the court may determine the loss of late delivery at its discretion according to the degree of fault of both parties.

and Hami branch of Xinjiang Houde Real Estate Co., Ltd.: before determining the winning bidder, the tenderee and the bidder negotiate on the bidding price, bidding scheme and other substantive contents, In violation of Article 43 of the bidding law of the people’s Republic of China, the supplementary agreement on construction projects signed by both parties is invalid, and the bid winning is invalid.

Referee rule 1 If the construction contract of the construction project is invalid, the court may, at its discretion, calculate the loss of late completion by referring to the contract’s agreement on the standard of liquidated damages for late completion – the gist of the case of construction contract dispute between Hangzhou Construction Engineering Group Co., Ltd.

Case No.: (2016) Supreme People’s Court of trial No.

175: Supreme People’s court case source: Bulletin of the Supreme People’s court, 2018, issue 6 (total issue 260) 3 The construction contract of the construction project is invalid, the terms of liquidated damages are invalid, and the loss of late delivery of the project can be determined at the discretion of both parties according to the degree of fault – the essence of the case of construction contract dispute between Zhejiang Hongxiang Construction Group Co., Ltd.

523: Supreme People’s court case source: China judicial documents network release date: 2020-01-132 If multiple construction contracts are invalid and the actual performance of the contract cannot be determined, the difference between the two disputed contracts can be based on the project quality, the fault of the parties The principle of good faith, etc.

Practical problems in practice, when the construction contract of the construction project is invalid, there are still cases where the rights and interests of the parties are damaged due to project quality defects, construction delay, work stoppage and slowdown, expected payment and other factors.

736: Supreme People’s court case source: Faxin selected 5 The construction contract is invalid, and the loss caused by the delay of the construction period should be determined by considering the degree of responsibility of both parties – the essence of the case of construction contract dispute between Huai’an Dachangjiang Real Estate Co., Ltd.

should be used to allocate losses reasonably – the essence of the appeal case of Jiangsu first construction and Installation Group Co., Ltd.

106: Supreme People’s court case source: selected cases of Faxin 4 The construction contract is invalid due to violation of the bidding regulations.

Although the supplementary agreement and the construction contract are determined to be invalid, both parties should still follow the principle of good faith when performing the contract before it is determined to be invalid.