It should be noted here that the problem to be solved in this answer is how to determine the starting point of interest for the unpaid project payment, not the amount of the project price.
If the contract terms stipulate the time for the employer’s completion settlement review, if the employer fails to review within the time limit, the next day after the expiration of the review period shall be the starting time of the project price interest; If the review time is not agreed or unclear in the special terms, the provisions of the general terms may apply.
If the construction contract of the construction project stipulates a specific date for the payment of the project payment, the interest of the project payment shall be calculated from the date when the date expires.
It is generally agreed that after the completion acceptance of the project, the Contractor shall provide the completion settlement report to the employer, and the employer shall review the completion settlement report within a certain period of time.
The completion settlement documents submitted by the contractor can be used as the basis for the settlement of project funds, which must be clearly stipulated in the special terms.
It is often when both parties reach a special agreement on settlement that they will have a clear time to pay the project payment.
If the parties agree to pay the project payment after the settlement of the project price, how to determine the starting time of interest on the project price.
Otherwise, even if the review period is agreed in the special terms, failure to reply within the agreed period shall be deemed as an expression of intention to recognize the completion settlement document, and the price specified in the completion settlement document shall not be regarded as the project price.
If the employer refuses the settlement without justified reasons or deliberately delays the settlement within the review and settlement period agreed in the contract, such as refusing the settlement on the grounds that the completion settlement documents submitted by the contractor are incomplete after the expiration of the review period, The interest on the unpaid project funds shall be calculated from the next day after the expiry of the employer’s review period.
In addition, when the review time is not agreed or unclear in the special terms, the provisions of the general terms can be applied.
How should we understand this.
Here, we mainly consider that since both parties have provisions on the submission of reports in the special terms, although there is no agreed review time, the meaning of both parties for the submission of reports and review reports is clear, and the review period obviously cannot go on indefinitely, so we think there are provisions in the general terms, However, the special terms do not explicitly exclude the general terms, so the general terms, as a part of the contract, can presume that both parties apply the general terms.
Therefore, we believe that as long as the review period of the employer is agreed between the parties, if the employer fails to review within the review period, the interest on the project price shall be calculated from the next day of the agreed review period, so as to urge the employer to review in time after receiving the completion settlement report submitted by the contractor.
9.
Obviously, this is not in line with the purpose and fairness of the contract.
In fact, this situation is rare.
We believe that the expression of paying the project payment after the settlement of the project price itself, due to the lack of a specific and clear date, should belong to the unclear agreement of the parties on the payment time.
Therefore, we believe that if the construction contract of the construction project stipulates that after the Contractor submits the settlement materials, the employer shall complete the review and pay the project payment within a certain period of time.
[interpretation] as mentioned above, the interest is calculated from the date when the project payment is payable.
There are provisions on the completion settlement of the construction project in the construction contract.
The employer should review the Contractor’s completion settlement report within the agreed time limit and raise objections.
If the construction contract of a construction project stipulates that the project payment shall be made after the settlement of the project price, it is because the parties have not agreed on the payment time.
That is, if the construction contract of the construction project stipulates that the project price shall be paid after the settlement of the project price and there is a clear agreement on the settlement time of the project price, the next day of the settlement of the project price shall be the starting time of the interest of the project price.
However, if the construction contract of the construction project stipulates that the project payment shall be paid after the settlement of the project price, and there is a clear agreement on the settlement time of the project price, the next day of the settlement of the project price is the starting time of the interest of the project price.
In practice, the construction contract of construction project stipulates that the project payment shall be paid after the settlement of the project price.
However, we believe that since the completion settlement procedure has been determined between the parties, both parties should be obliged to abide by it.
If it fails to review according to the contract, it can not take this report as the basis for the project price, but its failure to exercise its obligations clearly leads to the delay in the determination of the project price, It should not obtain the corresponding period benefits due to its fault, because if the employer does not review and determines the project price for a period or even a long time, then if the interest is calculated from the time when the project price is determined, the employer is naturally unwilling to review according to the contract, but ignores how long the Contractor’s completion settlement report can be delayed.
The situation in practice can be divided into several types: first, there is a specific payment date in the contract or agreement between both parties.
Because according to Article 21 of judicial interpretation I of 2020 construction project, “if the parties agree that the employer does not reply within the agreed time limit after receiving the completion settlement document, it shall be deemed to have approved the completion settlement document, and it shall be handled in accordance with the agreement.
At this time, the review period in the general terms can be taken as the review period of the employer..
Second, the contract terms have a time agreement on the completion settlement review of the employer.
If the contractor requests to settle the project price in accordance with the completion settlement document, the people’s court shall support it.” And the reply of the Supreme People’s Court on how to understand and apply Article 20 of the interpretation of the Supreme People’s Court on the application of law to the trial of disputes over construction contracts of construction projects.
If the employer raises an objection within the review period of completion settlement agreed in the contract, and both parties complete the project price settlement before litigation, the next day of project price settlement is the starting time of project price interest; If both parties fail to complete the settlement of the project price before filing a lawsuit, the date on which the parties file a lawsuit shall be the starting date of the interest on the project price.
After receiving the completion settlement documents, the employer will not reply within the agreed time limit, It is deemed to recognize such meaning of completion settlement documents.
