Q How to settle the project funds when the construction contract is terminated? A: After the termination of the construction contract for a construction project, if the quality of the completed construction project is qualified, the contract letting party shall pay the corresponding project price as agreed; If the quality of the completed construction project is unqualified, the repaired construction project passes the completion acceptance, and the Employer requests the Contractor to bear the repair cost, it shall be supported; If the repaired construction project fails to pass the completion acceptance and the contractor requests to pay the project price, it shall not be supported.
Reference case: The Supreme Court (2014) MYZZ No.
If the main building materials, building components, fittings and equipment provided by the Employer do not meet the mandatory standards or do not perform the obligation of assistance, which makes the Contractor unable to carry out the construction, and the Contractor fails to perform the corresponding obligations within a reasonable period after being urged to do so, the Contractor may terminate the contract.
69 “A construction contract dispute between a construction and installation engineering company in Qinghai and a real estate company in Qinghai”.
If the contract letting party is at fault for the losses caused by the unqualified construction project, it shall bear corresponding liabilities.
If the quality of the completed construction project is unqualified after the termination of the contract, it shall be handled according to the provisions of Article 793 of the Civil Code, that is, if the repaired construction project passes the completion acceptance, and the Employer requests the Contractor to bear the repair cost, it shall be supported, and the Contractor may request to pay the project price.
” Article 793 of the Civil Code stipulates: “If the construction contract of a construction project is invalid, but the construction project has passed the acceptance, the contractor may be compensated at a discount by reference to the agreement on the project price in the contract.
Article 806 of the Civil Code stipulates that: “If the Contractor subcontracts or illegally subcontracts the construction project, the Employer may terminate the contract.
If the construction contract of a construction project is invalid and the construction project experience is unqualified, it shall be handled according to the following circumstances: (1) If the repaired construction project has passed the acceptance, the employer may request the contractor to bear the repair cost; (2) If the experience of the repaired construction project is unqualified, the Contractor has no right to claim for compensation by referring to the agreed price of the project in the contract.
If the repaired construction project fails to pass the completion acceptance, the Contractor’s request for payment of project funds will not be supported.
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” It can be seen that the quality of the completed construction project is qualified after the termination of the contract, and the Employer shall pay the corresponding project price as agreed.
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After the termination of the contract, 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 not up to the standard, it shall be handled with reference to the provisions of Article 793 of this Law.
For losses caused by unqualified construction projects, if the Employer is at fault, it shall also bear corresponding civil liabilities.
