10 points for attention in signing construction contract

The scope of risk must be clearly defined when using fixed prices.

“Yin Yang contract” shall be eliminated.

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4、 Attention shall be paid to the contract price and adjustment price.

If both parties fail to complete the relevant work as agreed, the scope, specific responsibilities and calculation methods of compensation for the other party’s losses shall be clearly filled in.

The “contract price” shall be filled in according to the regulations of the Ministry of housing and urban rural development.

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The above contents are indicators reflecting the performance ability, and should be carefully analyzed and judged.

Source of this article: internal audit network.

1、 About the employer and the contractor 1.

The contract price of non bidding project shall be agreed by the employer and the contractor in the agreement according to the project budget.

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The specific time of each party’s work shall be filled in accurately.

9、 Attention shall be paid to the dispute and project subcontracting clauses.

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The specific responsibilities of the supplier shall be agreed.

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5、 Attention should be paid to the terms of project advance payment 1.

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6、 Attention shall be paid to the terms of project progress payment.

10、 As for Supplementary Clause 1, which new clauses or clauses need to be supplemented or which clauses need to be detailed, supplemented or modified, they can be supplemented as much as possible in the Supplementary Clauses, and they can be arranged in order.

The specific contents and requirements of the work done by both parties shall be filled in in detail.

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The payment time and method of project progress payment can be selected according to the visual progress: monthly settlement, sectional settlement, one-time settlement after completion (small project) and other settlement methods.

Subcontracted projects must be approved by the Employer, and subcontractors are prohibited from subcontracting their contracted projects.

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The arbitration is not subject to the limitation of grade and geographical jurisdiction.

The specific amount and calculation method of liquidated damages and compensation shall be agreed, and the more specific the better, with operability, so as to prevent disputes afterwards.

If the litigation mode is selected, the people’s court with jurisdiction should be selected (the litigation is territorial jurisdiction).

The employer needs to meet two aspects: ① subject qualification, that is, whether the construction related procedures are complete.

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The Contractor’s secondary companies and engineering offices cannot sign contracts with foreign parties.

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The Contractor shall meet the following requirements: ① qualification; ② Construction capacity; ③ Social reputation; ④ Financial situation.

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Both parties shall agree on a percentage coefficient, or adopt the absolute value method.

In order to prevent contract disputes, the following 10 aspects should be noted during the signing process.

Example: Has the construction land been approved? Is it included in the investment plan? Is the planning and design approved? Whether the bidding has been conducted.

If the arbitration method is selected, the parties may choose the arbitration institution independently.

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The calculation method of risk cost shall be clearly agreed.

Both parties shall agree on the settlement method of the supplied materials and equipment (pre settlement method, current settlement method, post settlement method or other methods can be selected).

3.

The allocation of project progress payment shall be calculated based on the completed quantities, corresponding unit prices and relevant pricing basis confirmed by the Employer’s representative.

7、 Attention shall be paid to the terms of supply of materials and equipment 1.

② The ability to perform the contract is the issue of funds.

The specific liability of the Contractor for breach of the General Terms shall be specified in the Contract.

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3、 Attention shall be paid to the terms of work of the Employer and the Contractor.

The agreed time and proportion of project payment deduction shall be filled in.

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The specific content, variety, specification, quantity, unit price, quality grade, time and place of supply of materials and equipment shall be filled in in detail.

2、 Attention to contract price 1.

The supplementary terms must comply with the state and current laws and regulations, and the relevant written agreements signed separately shall be consistent with the spirit of the main contract.

The contract shall first specify the specific liability of the Employer for breach of advance payment, project progress payment and completion settlement in the General Terms.

Other liabilities for breach of contract shall also be stipulated.

4.

The amount of project advance payment should be calculated in combination with the project payment, construction period and labor and materials contracting.

The specific time or relative time of the Employer’s payment to the Contractor shall be filled in accurately.

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The construction contract of a construction project is a legal document that protects the rights and interests of both the employer and the contractor according to law, and is the highest code of conduct of both the employer and the contractor in the process of project construction.

When filling in the contract price and adjusting it, it shall be agreed that one shall be included in this clause according to the three methods of fixed price, adjustable price and cost plus remuneration listed in the General Terms.

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The contract price is a mutually agreed clause, which requires agreement and determination.

When adopting fixed prices, we should pay attention to defining the types of fixed prices.

Both parties shall reach an agreement on whether to choose arbitration or litigation for dispute settlement.

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For risk expenses beyond the risk scope, the adjustment method shall be agreed.

8、 Attention shall be paid to the breach clauses.

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The contract price of the bidding project shall be agreed in the agreement by the employer and the contractor according to the winning price in the letter of acceptance.

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Whether the funds required for construction have been or may be implemented.

The provisional price, provisional estimate and budgetary estimate shall not be regarded as the contract price, and the agreed but uncertain cost shall not be regarded as the contract price.

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Such as: total price, unit price, or part of the total price, so as to avoid disputes during the performance of the contract.

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The copyright of the articles edited and collated by the audit industry observation belongs to the author.