Interpretation of the Supreme People’s Court on the application of law in the trial of disputes over construction contracts of construction

Article 7 the labor subcontracting contract signed by the contractor with legal qualification for labor operation and the general contractor and subcontractor shall not be supported if the party requests confirmation of invalidity on the ground that the subcontracting construction project violates the legal provisions.

Article 3 if the construction contract of a construction project is invalid and the construction project fails to pass the completion acceptance, it shall be handled according to the following circumstances: (1) if the repaired construction project passes the completion acceptance, and the employer requests the contractor to bear the repair costs, it shall be supported; (2) If the repaired construction project fails to pass the completion acceptance, and the contractor requests to pay the project price, it will not be supported.

Article 12 the contract letting party shall bear the fault liability for the quality defects of the construction project caused by one of the following circumstances: (1) the design provided is defective; (2) The building materials, building components, fittings and equipment provided or designated to be purchased do not meet the mandatory standards; (3) Directly appoint subcontractors to subcontract professional projects.

Article 5 if a contractor signs a construction contract for a construction project beyond the business scope permitted by the qualification level and obtains the corresponding qualification level before the completion of the construction project, the request of the party concerned to treat it as an invalid contract shall not be supported.

If the parties have no agreement on the advance, it shall be treated as the project arrears.

Article 11 if the contractor refuses to repair, rework or rebuild the construction project due to the Contractor’s fault, and the employer requests to reduce the payment of the project price, it shall be supported.

Article 6 if the parties have an agreement on the advance and the interest on the advance, and the contractor requests to return the advance and its interest in accordance with the agreement, it shall be supported, except for the part where the agreed interest calculation standard is higher than the interest rate of similar loans issued by the people’s Bank of China in the same period.

If the contract is terminated due to one party’s breach of contract, the breaching party shall compensate the other party for the losses caused thereby.

Article 9 if the employer has one of the following circumstances, which makes the contractor unable to carry out the construction and fails to perform the corresponding obligations within a reasonable period of time, and the contractor requests to terminate the construction contract of the construction project, it shall be supported: (1) failing to pay the project price as agreed; (2) The main building materials, building components, fittings and equipment provided do not meet the mandatory standards; (3) Failing to perform the obligation of assistance agreed in the contract.

The interpretation of the Supreme People’s Court on the application of law in the trial of disputes over construction contracts of construction projects, which was adopted at the 1327th meeting of the judicial committee of the Supreme People’s Court on September 29, 2004, is hereby promulgated and shall enter into force as of January 1, 2005.

If the parties have not agreed on the interest on the advance, and the contractor requests to pay interest, it will not be supported.

Article 13 if the construction project has not been completed and accepted, and the employer uses it without authorization, and claims rights on the ground that the quality of the used part does not meet the agreement, it will not be supported; However, the Contractor shall bear civil liability for the quality of the foundation works and the main structure within the reasonable service life of the construction project..

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If the employer is at fault for the losses caused by the unqualified construction project, it shall also bear the corresponding civil liability.

Article 2 the construction contract of the construction project is invalid, but if the construction project passes the completion acceptance, and the contractor requests to pay the project price according to the contract, it shall be supported.

If the contractor is at fault, he shall also bear the corresponding fault liability.

Article 4 the Contractor’s illegal subcontracting, illegal subcontracting of construction projects or the unqualified actual constructor’s signing of construction project construction contracts with others in the name of a qualified construction enterprise is invalid.

Article 8 if the contractor has one of the following circumstances, and the employer requests to terminate the construction contract of the construction project, it should be supported: (1) clearly express or indicate by behavior that it will not perform its main obligations under the contract; (2) The project is not completed within the time limit agreed in the contract, and it has not been completed within a reasonable time limit urged by the employer; (3) The completed construction project is unqualified and refuses to be repaired; (4) Illegally subcontracting or illegally subcontracting the contracted construction project.

Article 10 after the termination of the construction contract of a construction project, if the quality of the completed construction project is qualified, the employer shall pay the corresponding project price as agreed; If the quality of the completed construction project is unqualified, it shall be handled with reference to Article 3 of this interpretation.

Article 1 a construction contract for a construction project shall be deemed invalid in accordance with the provisions of item (5) of Article 52 of the contract law in any of the following circumstances: (1) the contractor has not obtained the qualification of a construction enterprise or has exceeded the qualification level; (2) The unqualified actual constructor borrows the name of a qualified construction enterprise; (3) A construction project that must be subject to tender but fails to tender or wins the bid is invalid.

The interpretation of the Supreme People’s Court on the application of law in the trial of disputes over construction contracts of construction projects (adopted at the 1327th meeting of the judicial committee of the Supreme People’s Court on September 29th, 2004 and implemented as of January 1st, 2005) issued by the Supreme People’s Court on October 25th, 2004, in accordance with the general principles of the civil law of the people’s Republic of China, the contract law of the people’s Republic of China, and the bidding law of the people’s Republic of China The Civil Procedure Law of the people’s Republic of China and other laws and regulations, in combination with the actual civil trial, formulate this interpretation on the application of law in the trial of disputes over construction contracts of construction projects.

The people’s court may, in accordance with Article 134 of the general principles of the civil law, confiscate the illegal gains obtained by the parties.