The EPC total price is lump sum, and the list content has not been constructed. Can it be deducted?

In the General Contract Conditions of Part II of the “Construction Project General Contract (Demonstration Text)” (GF-2020-0216), the “price list” is defined as a list that forms an integral part of the contract documents and is filled out by the contractor in accordance with the format and requirements specified in the project list provided by the employer, indicating the price.

Dunhuang Clean Energy Company believes that Anhui Electric Power Second Construction Company did not purchase and install equipment according to the scope and scale standards determined in the bidding documents and contracts, did not organize construction according to the construction drawings approved by Dunhuang Clean Energy Company, made unauthorized changes to some construction content, cut corners on work and materials, and did not purchase and install corresponding equipment according to the bidding documents and cost list.

The court does not support Dunhuang Clean Energy Company’s request for deduction
.

Finally, let’s take a look at a case: Dunhuang Clean Energy Development Co., Ltd.

Any quantities and prices of construction and installation projects listed in the price list shall be limited to the reference of changes and payments agreed upon in the contract, and shall not be used as a basis for settlement.

|Source: Voice of General Contracting, Construction Practitioners Observing EPC Project Total Lump Sum List, Can Unconstructed Content Be Deducted? Firstly, let’s take a look at several definitions: 1.

481 Trial Court: Gansu Provincial Higher People’s Court’s Judgment Summary: Non construction content within the scope of the EPC total price list shall not be deducted.

(hereinafter referred to as “Dunhuang Clean Energy Company”) and China Energy Construction Group Anhui Electric Power Construction Second Engineering Co., Ltd.

2.

Loop Box

Article 3.2.8 of the “Valuation Specification for General Contracting of Construction Projects (Draft for Soliciting Opinions)” states that the construction and installation quantities listed in the price list are only estimated quantities and shall not be considered as actual or accurate quantities required for the contractor to implement the project.

After the court heard the case, it was deemed that the audit was unilaterally commissioned by the contracting party (the contract was a total price contract and did not specify the audit results as the basis for settlement), and the project handover and production handover document stated that there were no remaining or rectification projects, and it was confirmed with the seals of the construction unit, production unit, main design unit, main construction unit, and main commissioning unit.

(hereinafter referred to as “Anhui Electric Power Second Construction Company”) Construction Project Contract Dispute Case No.: (2018) Gan Min Zhong No.

This part of the payment should be deducted, And provide proof of the audit statement of the project completion settlement issued by the external engineering cost firm.