When signing the construction contract, the employer and the Contractor shall, according to the specific situation of the project, fully consider the changes of construction period and market price, reasonably determine the signed contract price and relevant adjustment methods, and strictly implement them in the process of contract performance.
2.
There are major changes in the basic conditions of the contract that cannot be foreseen by the parties at the time of signing the contract and do not belong to commercial risk, and it is obviously unfair for the parties to continue to perform the contract.
If the contract stipulates the scope and range of risk, it shall be implemented in accordance with the contract.
In the construction contract, unlimited risk, all risks or similar statements shall not be used to specify the risks in pricing The scope shall not be clearly unreasonable or unfair.
Attached text: on October 27, 2021, Hunan Provincial Department of housing and urban rural development issued the guiding opinions on Further Strengthening the prevention and control of price risk of building materials, which proposed that the developer and the contractor could negotiate and sign a supplementary agreement under four circumstances.
The risk factors of building material price should be fully considered in the preparation of investment estimation and design estimate of EPC project.
The Contractor shall collect and prepare the data on the price fluctuation of building materials in time during the implementation of project construction.
In case of delay in the construction period of the contract project, the price adjustment during the contract performance period shall be determined in accordance with the principles mentioned in the documents..
It is prohibited to be listed in the bidding documents Or use unlimited risk, all risks or similar statements in the contract to specify the risk content and scope in pricing, and there shall be no obvious unreasonable or unfair content.
Recently, the market price of building materials fluctuates greatly, which has a great impact on construction projects.
They should correctly guide the employer and the contractor to reasonably determine And effectively control the project cost and maintain the healthy and orderly development of the construction market.
Hunan Provincial Department of housing and urban rural development, October 26, 2021, Beijing, August 11, 2021, Beijing housing and Urban Rural Development Commission issued the guiding opinions on strengthening the prevention and control of market price risks such as labor and materials in construction contracts of construction projects 1.
The price risk range of materials in the construction contract is agreed as unlimited risk; 4.
Housing and urban rural development bureaus of cities and prefectures and relevant units: since 2020, the prices of raw materials and finished products of construction projects such as steel, copper, aluminum, cement and glass have continued to rise due to the impact of international environment and macro policies, It has seriously affected the normal performance of the construction contract in our province.
3.
Project cost management organizations at all levels should pay close attention to the fluctuation of material market prices, increase the coverage of material price release varieties, and meet the market demand.
In case of abnormal fluctuation of market price, both parties shall negotiate and sign a supplementary agreement, which shall be implemented in accordance with the supplementary agreement.
In case of sharp price fluctuations in the short term, they should speed up the frequency of information collection and release, improve the timeliness and accuracy of information release, and issue early warning in time.
III.
If the contract stipulates to adopt fixed price lump sum without adjusting the fluctuation of market price, when the price change of labor, materials, construction machinery and other factors constitutes a change in the situation specified in article 533 of the civil code of the people’s Republic of China, both parties shall negotiate and sign a supplementary agreement based on relevant regulations and actual conditions and the principle of good faith and fairness to share risks reasonably.
If the contract has agreed not to adjust the price of main materials or agreed that the Contractor shall bear unlimited material price risk, when the rise and fall of main materials is too large, the employer and the Contractor shall negotiate and sign a supplementary agreement on price adjustment of main materials based on the principle of seeking truth from facts and fairness.
It is obviously unfair for one party to continue to perform the contract.
1.
4.
There is no agreement on the risk range and adjustment method of material price in the construction contract The adjustment method is unclear; 3.
3.
Original: guidance of Hunan Provincial Department of housing and urban rural development on Further Strengthening the prevention and control of price risk of building materials.
192 of the provincial people’s Government) , in combination with the actual situation of our province and following the principles of seeking truth from facts, fairness and reasonableness, the following guiding opinions are further put forward on the prevention and control of material price risks: first, the competent departments of housing and urban rural development of all cities and prefectures should strengthen the supervision of bidding documents and construction contracts, standardize the performance of contracts between the employer and the contractor, urge the employer and the contractor to enhance their awareness of market risks, and effectively protect construction projects, especially First, the smooth implementation of key engineering projects.
If the scope and range of risk are not agreed or unclear in the contract, the employer and the Contractor shall negotiate to reasonably share the risk and sign a supplementary agreement.
In order to maintain the order of the construction market, ensure the quality and safety of the project, guide the market to reasonably share the risks caused by abnormal fluctuations in material prices, and effectively ensure the legitimate rights and interests of the employer and the contractor, according to the civil code of the people’s Republic of China, the measures for the administration of contracting and contracting valuation of construction projects (Order No.
If the scope and range of risk are not agreed or unclear in the contract, or if the contract is agreed but fixed price lump sum is adopted, and the basic conditions of the contract have undergone major changes that cannot be foreseen by the employer and the contractor at the time of signing the contract and do not belong to commercial risks after the establishment of the contract, continue to perform If the contract is obviously unfair to one of the employer and the contractor, the employer and the contractor may sign a supplementary agreement in accordance with the relevant provisions of the civil code and the actual situation, in the principle of good faith and fairness and with reference to the principles mentioned in the text, so as to reasonably share the risks.
The bidder shall fully consider the risk factors of pricing of building materials and make a reasonable quotation.
If the signed construction contract meets one of the following circumstances, the employer and the contractor can negotiate and sign a supplementary agreement with reference to relevant regulations to reasonably share the risk: 1.
16 of the Ministry of housing and urban rural development) and the measures for the administration of construction project cost in Hunan Province (Order No.
Bidding When preparing the bidding documents, the bidder shall specify the benchmark period of the bidding quotation, the risk content and scope borne by the bidder.
Shanghai, Hunan, Beijing, Ningxia, Inner Mongolia, Shaanxi, Gansu, Jiangsu, Henan, Shandong, Hubei, Guizhou and other provinces and cities (the winning red provincial and municipal documents in the figure below) made it clear that unlimited risk and all risk shall not be used to specify the content and scope of material price risk in the contract terms.
On November 1, 2021, Shanghai building materials industry market management station issued the guiding opinions on Further Strengthening the prevention and control of market price fluctuation risk of human resources and machines for construction projects, which made it clear that for engineering projects that have signed engineering construction contracts but have not been settled, refer to the following guiding opinions, Both parties shall negotiate and sign a supplementary agreement.
Further strengthen the price supervision and service of engineering construction materials and maintain The construction market is stable.
4.
There is no agreement on the risk range and adjustment method of material price in the construction contract; 2.
4.
When signing the construction contract, the employer and the Contractor shall agree on the price risk range and adjustment methods for adjustable materials and reasonably share the risks.
When the price of building materials changes significantly beyond the agreement, it shall collect them in time Relevant information, actively negotiate with the employer and sign a supplementary agreement.
2.
Second, all parties involved in the construction of the project should further enhance the awareness of material price risk prevention in the whole process of the construction project, formulate risk response and prevention and control measures to ensure the normal construction and quality safety of the project.
There is no agreement on the risk range and adjustment method of material price in the construction contract; The risk range and adjustment method of material price in the construction contract are unclear; The risk range of material price in the construction contract is agreed as unlimited risk; The basic conditions of the contract have undergone major changes that cannot be foreseen by the parties at the time of conclusion of the contract and do not belong to commercial risks.
▲ in recent years, all provinces, cities and autonomous regions have issued documents to summarize Shanghai.
