The construction unit feels that the developer has its own reasons for not returning to work without paying the debts, and the owner can only be anxious…
If CNNC Huaxing still does not actively cooperate, the Housing and Urban Rural Development Bureau of Hanjiang District will launch administrative punishment measures.
During this period, the Housing and Urban Rural Development Bureau interviewed many times, but it didn’t have any effect.
Since then, from November to December, Hanjiang District Housing and Urban Rural Development Bureau has interviewed the relevant principals of the two companies for many times, asking the general contractor and Zhengrong Group to accelerate the negotiation process, reach a resumption agreement as soon as possible, and ensure the smooth completion of the project with quality and quantity guaranteed after the commencement, without malicious shutdown.
The Housing and Urban Rural Development Bureau of Hanjiang District immediately interviewed the relevant leaders of CNNC Huaxing and Zhengrong Putian Company, asking them to solve the debt conflict and resume work as soon as possible.
The Housing and Urban Rural Development Bureau of Hanjiang District requires CNNC Huaxing Company to allow subcontractors to enter the site for construction before December 9 without blocking them, and arrange the construction time node and payment plan in reverse.
On December 1, Putian Municipal Bureau of Housing and Urban Rural Development convened relevant principals of Zhengrong Company, CNNC Huaxing Company and China Merchants Bank to coordinate the shutdown of Zhengrong Company’s three real estate projects in Hanjiang, and formed a memorandum of special meeting: CNNC Huaxing Company was required to distinguish the risks of project subsidiaries from those of the group holding company, and properly handle the problems of project construction and project payment in various regions; Submit the resumption plan to Putian Housing and Urban Rural Development Bureau and Hanjiang District Housing and Urban Rural Development Bureau on December 2, and copy it to Zhengrong Company and China Merchants Bank; On December 5, 2022, normal construction of three real estate projects in Hanjiang will be resumed.
Therefore, CNNC Huaxing stopped the construction of three projects under construction in Hanjiang.
However, up to now, CNNC Huaxing has not returned to work, and the Housing and Urban Rural Development Bureau of Hanjiang District is in the process of further negotiation and interview.
I hope the government can help and ask the construction unit CNNC to deliver the house on time with quality and quantity guaranteed during normal construction.
However, if the project funds have been allocated on time, why would they stop working? The matter was investigated and handled by the Housing and Urban Rural Development Bureau of Hanjiang District, and a detailed reply was made on January 4, 2023: according to the understanding of the Housing and Urban Rural Development Bureau of Hanjiang District, Zhengrong Company had a liquidity risk in March 2022, which led to a huge debt problem between the company and the general contractor, CNNC Huaxing, which could not be effectively resolved.
At the end of last year, the owners of Hanjiang Zhengrong Mansion in Putian sought help on the People’s Online, saying that the construction company stopped the construction of the building under the normal allocation of funds to ensure the construction site.
Due to the large contradiction between the debt problems of CNNC Huaxing and Zhengrong Group inside and outside the province, the parties are currently communicating and coordinating.
Comments: The two levels of housing construction departments in Putian and Hanjiang have tried their best to coordinate, but we can see from this incident that in reality, the disposal of such shutdown projects is often far more complex than it appears, not only involving the creditor’s rights and debt disputes of a single sub project, but also involving multiple projects inside and outside the province.
On November 17 last year, the project of CNNC Huaxing was shut down again.
Since the explosion of many brand real estate enterprises, we have seen a lot of uncompleted buildings that have been stopped halfway.
