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(Adopted and Promulgated by the Second Session of the Ninth National People's
Article 269 Definition of Contract for Construction
Project
A contract for construction project is a contract whereby the contractor performs
project construction, and the developer pays the price.
Contracts for construction projects include contracts for survey, design, and
construction.
Article 270 Writing Requirement
A contract for construction project shall be in writing.
Article 271 Tendering Process in Construction Project
Tendering for a construction project shall be conducted in an open, fair and
impartial manner in accordance with the relevant laws.
Article 272 Contracting and Subcontracting in Construction
Projects
The developer may enter into a contract for construction project with a prime
contractor, or enter into contracts for survey, design, and construction with
the surveyor, designer, and constructor respectively. The developer may not
divide a construction project which should be completed by one contractor into
several parts and contract them out to several contractors.
Subject to consent by the developer, the prime contractor or the contractor
for survey, design, or construction may delegate part of the contracted work
to a third person. The third person and the prime contractor or the contractor
for survey, design, or construction shall be jointly and severally liable to
the developer in respect of the work product completed by such third person.
The contractor may not assign in whole to any third person the contracted construction
project, or divide the whole contracted construction project into several parts
and separately assign each part to a third person under the guise of sub-contracting.
The contractor is prohibited from sub-contracting any part of the project to
an entity not appropriately qualified. A sub-contractor is prohibited from further
sub-contracting its contracted work. The main structure of the construction
project must be constructed by the contractor itself.
Article 273 Major State Construction Projects
A contract for a major state construction project shall be concluded in accordance
with the procedure prescribed by the state and in compliance with the state-approved
documents such as the investment plan and feasibility studies report, etc.
Article 274 Terms of Contract for Survey or Design
A contract for survey or design includes terms such as the time limit for submission
of the relevant basic information and documents (including budget estimate),
the quality requirements, fees, and other conditions of cooperation, etc.
Article 275 Terms of Construction Contract
A construction contract includes terms such as the scope of the project, the
construction period, the time for commencement and completion of any work to
be commissioned in the interim, the quality of the project, the cost of the
project, the time for delivery of technical materials, the responsibilities
for the supply of materials and equipment, the appropriation of funds and settlement
of account, inspection upon completion of the project, the scope and period
of quality warranty, and cooperation between the parties, etc.
Article 276 Supervision of Construction Project
Where the construction project is subject to supervision, the developer shall
enter into an agency appointment contract for project supervision with a project
supervisor in writing. The rights, obligations and associated legal liabilities
of the developer and supervisor shall be prescribed in accordance with the provisions
hereof concerning agency appointment contracts and the provisions of other relevant
laws and administrative regulations.
Article 277 Developer's Right to Inspect
Provided that the developer does not interfere with the normal operation of
the contractor, it may inspect the progress and quality of the work at any time.
Article 278 Concealed Work
In the case of concealed work, the contractor shall give the developer notice
for inspection prior to concealment. Where the developer fails to timely conduct
inspection, the contractor may extend the relevant project milestones, and is
entitled to claim damages for work stoppage or work slowdown, etc.
Article 279 Inspection of Completed Project; No Use
Prior to Inspection
Upon completion of the construction project, the developer shall conduct acceptance
inspection according to the construction drawings and specifications, and in
accordance with the rules of construction inspection and quality inspection
standard prescribed by the state. Once the construction project has passed the
acceptance inspection, the developer shall pay the prescribed price and accept
the construction project.
The completed construction project may be put into use only after it has passed
the acceptance inspection; if the construction project has not been inspected
or has failed the inspection, it may not be put into use.
Article 280 Developer's Remedies in Case of Non-compliant
Survey or Design
Where the developer sustains any loss from construction delay due to non-compliance
of the survey or design or due to delayed delivery of the survey or design documents,
the surveyor or the designer shall continue to improve the survey or design,
reduce or forgo the survey fee or design fee, and pay damages.
Article 281 Developer's Remedies in Case of Non-conforming
Construction
Where the construction project fails to meet the prescribed quality requirements
due to any reason attributable to the constructor, the developer is entitled
to require the constructor to repair, re-construct or make alteration free of
charge within a reasonable time. Where delivery of the project is delayed due
to such repair, re-construction or alteration, the constructor shall be liable
for breach of contract.
Article 282 Contractor Liable for Personal and Property
Damage
Where the construction project caused personal injury and property damage during
its reasonable usage period due to any reason attributable to the contractor,
the contractor shall be liable for damages.
Article 283 Contractor's Remedies in Case of Developer's
Failure to Provide Necessary Conditions
Where the developer fails to provide raw materials, equipment, site, funds,
or technical information at the prescribed time and in accordance with the contractual
requirements, the contractor may extend the relevant project milestones, and
is entitled to claim damages for work stoppage or slowdown, etc.
Article 284 Contractor's Remedies in Case of Project
Interruption Due to Reasons Attributable to Developer
If an ongoing project is stopped or delayed due to any reason attributable to
the developer, the developer shall take the appropriate measures to make up
or mitigate the loss, and shall indemnify the contractor for its loss and out-of-pocket
expenses arising from resulting work stoppage, slowdown, reshipment, re-dispatch
of mechanical equipment, and excess inventory of materials and assemblies, etc.
Article 285 Surveyor's Remedies in Case of Developer's
Failure to Cooperate
Where in the course of survey or design, any repeating work, work stoppage or
change of design occurs due to the developer's change of plan, the incorrect
information provided by it, or its failure to provide the working conditions
necessary for the survey or design at the prescribed time, the developer shall
increase the fees in light of the actual amount of work done by the surveyor
or designer.
Article 286 Contractor's Remedies in Case of Developer's
Failure to Pay Price
If the developer failed to pay the price in accordance with the contract, the
contractor may demand payment from the developer within a reasonable period.
Where the developer fails to pay the price at the end of such period, the contractor
may enter into an agreement with the developer to liquidate the project, and
may also petition the People's Court to auction the project in accordance with
the law, unless such project is not fit for liquidation or auction in light
of its nature.
The construction project price shall be paid in priority out of proceeds from
the liquidation or auction of the project.
Article 287 Provisions Governing Contracts of Hired
Works Applicable
A matter not provided for in this Chapter shall be governed by the relevant
provision governing contracts of hired works
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