2021.12.04、WANG, Shuningi、YANG, Tianbolun
PART 1. OVERVIEW
1.1 Construction Dispute Resolution Enter-ing m88 casino bonus code Civil Code Era
On 28 May 2020, m88 casino bonus code National People’s Congress adopted m88 casino bonus code Civil Code of m88 casino bonus code People’s Republic of China (“Civil Code”), which came into effect on 1 January 2021.
As China’s civil legal system enters the Civil Code era, the Chinese construction legal system is facing significant structural changes. In addition to a series of important construction legal sys-tems revised or created by the Civil Code, original laws that were closely related to construction projects such as the General Principles of the Civil Law of the People’s Republic of China, the Security Law of the People’s Republic of China, the Contract Law of the People’s Republic of China (“Contract Law”), the Real Rights Law of the People’s Republic of China, the Tort Law of the People’s Republic of China, and the General Rules of the Civil Law of the People’s Republic of China were repealed simultaneously. Accordingly, a large number of judicial interpretations formu-lated by the Supreme People’s Court (“SPC”) in accordance with the original laws have also been repealed, including the Interpretation on Issues Concerning the Application of the Law in the Trial of Cases Regarding Disputes over Construction Project Contracts (“Original Judicial Interpreta-tion I on Construction Contracts”) and Interpre-tation on Issues Concerning the Application of the Law in the Trial of Cases Regarding Disputes over Construction Project Contracts (II) (“Original Judicial Interpretation II on Construction Con-tracts”), both playing an important role in con-struction dispute resolution in the long term. Meanwhile, SPC has revised or promulgated a large number of new judicial interpretations in accordance with the Civil Code, including the Interpretation on Issues Concerning the Applica-tion of the Law in the Trial of Cases Regarding Disputes over Construction Project Contracts (I) (“New Judicial Interpretation I on Construction Contracts”), which came into force at the same time as the Civil Code.
Undoubtedly, with m88 casino bonus code implementation of m88 casino bonus code Civil Code and its supporting judicial interpretations, m88 casino bonus code practical development of construction dispute resolution will face a series of new tasks, chal-lenges, and opportunities.
1.2 EPC Contract for Construction Project (Model Text) (2020)
On 25 November 2020, m88 casino bonus code Ministry of Housing and Urban-Rural Development (“MOHURD”) and m88 casino bonus code State Administration for Market Regulation (“SAMR”) promulgated m88 casino bonus code Engineering, Pro-curement and Construction Contract for Con-struction Project (Model Text) (GF-2020-0216) (“Model Text 2020”), which is implemented from 1 January 2021.
On m88 casino bonus code basis of m88 casino bonus code existing standard forms of construction and engineering contracts, standard forms of Engineering, Procurement and Con-struction (EPC) contracts, and standard tender documents for EPC contracting in China, m88 casino bonus code Model Text 2020 has fully drawn upon and ab-sorbed m88 casino bonus code structure and contents of m88 casino bonus code 1999 and 2017 versions of m88 casino bonus code Conditions of Contract for Construction of m88 casino bonus code International Federation of Consulting Engineers (FIDIC).
In practice, model texts for construction contracts not only serve as m88 casino bonus code basis for parties to conclude a contract and determine m88 casino bonus code rights and obliga-tions in a specific project, but also affect m88 casino bonus code understanding and application of trading habits for construction projects to a certain extent. In this context, m88 casino bonus code promulgation and implementa-tion of m88 casino bonus code Model Text 2020, which draws upon m88 casino bonus code strengths of preceding model texts, will inject new elements and vigor into m88 casino bonus code practices of construction dispute resolution in China, and continue to have a comprehensive and far-reaching impact.
1.3 Overseas Construction Contracting Business Decreases Due to m88 casino bonus code Impact of COVID-19.
In 2020, due to m88 casino bonus code ongoing impact of COVID-19, m88 casino bonus code turnover of China’s completed overseas construction contracting business reached reached RMB 1.07561 trillion (equivalent to USD 155.94 billion), down by 9.8% from m88 casino bonus code previous year, and m88 casino bonus code value of newly signed contracts reached RMB 1.76261 trillion (equivalent to USD 255.54 billion), down by 1.8% from m88 casino bonus code previous year.1
In terms of overseas construction contracting projects under m88 casino bonus code Belt and Road Initiative, Chi-nese enterprises signed 5,611 new contracts for overseas construction projects in 61 countries along m88 casino bonus code Belt and Road Initiative with a total value of USD 141.46 billion, down by 8.7% from m88 casino bonus code previous year and accounting for 55.4% of m88 casino bonus code value of newly-signed contracts for China’s overseas construction contracting in m88 casino bonus code same period; and m88 casino bonus code turnover of completed projects reached USD 91.12 billion, down by 7% from m88 casino bonus code previous year and accounting for 58.4% of m88 casino bonus code total amount in m88 casino bonus code same period.
Compared with m88 casino bonus code decrease in overseas con-struction contracting business due to m88 casino bonus code impact of COVID-19, in terms of outbound investment, Chinese enterprises made non-financial direct investment of USD 17.79 billion in 58 Belt and Road Initiative countries, up by 18.3% from m88 casino bonus code previous year and accounting for 16.2% of m88 casino bonus code total amount in m88 casino bonus code same period (up by 2.6% from m88 casino bonus code previous year), mainly in Singapore, Indone-sia, Vietnam, Laos, Malaysia, Cambodia, Thai-land, m88 casino bonus code United Arab Emirates, Kazakhstan, Is-rael and om88 casino bonus coder countries.2To some extent, this indicates Chinese enterprises’ coping strategies and development trends against m88 casino bonus code negative impact of COVID-19.
Moreover, in m88 casino bonus code Engineering News-Record’s (ENR) 2020 Top 250 International Contractors, a total of 74 enterprises from m88 casino bonus code Mainland China were shortlisted, continuing to top m88 casino bonus code list of all countries in m88 casino bonus code world. This number decreased by one compared with m88 casino bonus code previous year, mainly because some enterprises implemented mergers and reorganizations, and m88 casino bonus code parent companies featured in m88 casino bonus code list.3
1.4 PPP Dispute Resolution
On 1 January 2020, SPC’s Provisions on Several Issues Concerning m88 casino bonus code Trial of Administrative Agreement Cases (“Judicial Interpretation on Administrative Agreements”) came into force. In Commercial Dispute Resolution in China: An Annual Review and Preview (2020), m88 casino bonus code authors analyzed how m88 casino bonus code definition of administrative agreements and m88 casino bonus code denial of m88 casino bonus code arbitrability of administrative agreements will affect m88 casino bonus code arbitra-tion clause in a public-private partnership agreement (“PPP agreement”). This Chapter here will empirically analyze recent judicial prac-tices, in particular, m88 casino bonus code ruling on m88 casino bonus code arbitrability of a PPP agreement decided by m88 casino bonus code Beijing No. 4 Intermediate People’s Court in 2020. Please refer to Case 3 in PART 3.3 below.
PART 2. MAJOR UPDATES OF LAWS AND REGULATIONS AND Om88 casino bonus codeR NORMATIVE DOCUMENTS
2.1 Civil Code
m88 casino bonus code Civil Code consists of 1,260 articles in total, among which m88 casino bonus code “General Provisions”, “Book of Real Rights”, “Book of Contracts” and “Book of Tort Liability” are relevant to all aspects of con-struction and related dispute resolution. Moreo-ver, “Chapter XVIII Construction Project Contract” in Part Two “Book of Contracts” is directly linked to construction contracts. This part basically fol-lows m88 casino bonus code provisions regarding construction con-tracts under Chapter 16 of m88 casino bonus code Contract Law. However, m88 casino bonus code number of articles is increased from 19 to 21. Two new articles are added mainly to incorporate relevant provisions on dealing with a void contract and m88 casino bonus code statutory right to terminate construction contracts under m88 casino bonus code Original Judicial Interpretation I on Construction Contracts.
2.1.1 Dealing with a Void Construction Con-tract
Article 793 of m88 casino bonus code Civil Code incorporates m88 casino bonus code rules for dealing with a void construction con-tracts from Articles 2 and 3 of m88 casino bonus code Original Judicial Interpretation I on Construction Contracts, but makes m88 casino bonus code following three important changes:
First, rephrasing m88 casino bonus code wordings of “pass inspection on completion” of a construction project to “pass inspection” of a construction project, that is, even if no inspection on completion is conducted for a construction project (such as an “uncompleted project”), m88 casino bonus code results of phased acceptance for completed sub-section, sub-item and unit work may be used as m88 casino bonus code basis for dealing with a void construction contract.
Second, removing m88 casino bonus code provision that “m88 casino bonus code contractor” is m88 casino bonus code claimant who may request to be compensated with reference to m88 casino bonus code price agreed in m88 casino bonus code contract, that is, if a construction contract is invalid, both m88 casino bonus code project employer and m88 casino bonus code contractor may request compensation with reference to m88 casino bonus code price agreed in m88 casino bonus code invalid contract.
Third, rephrasing m88 casino bonus code wordings of requesting to “pay m88 casino bonus code project price with reference to m88 casino bonus code agreement in m88 casino bonus code contract” to requesting to “compensate with reference to m88 casino bonus code project price agreed in m88 casino bonus code contract and based on m88 casino bonus code appraised price of m88 casino bonus code construction project”. m88 casino bonus code revised text is not only more consistent with m88 casino bonus code statement of m88 casino bonus code legal consequences of a void contract as specified in m88 casino bonus code Civil Code, but also corrects m88 casino bonus code misunderstanding in practice that “paying m88 casino bonus code project price with reference to m88 casino bonus code contract” means that a void contract shall be dealt with as per a valid contract.
2.1.2 Statutory termination of construction contract
Article 806 of m88 casino bonus code Civil Code mainly absorbs m88 casino bonus code relevant provisions under Articles 8–10 of m88 casino bonus code Original Judicial Interpretation I on Construction Contracts regarding m88 casino bonus code statutory termination right of m88 casino bonus code employer and m88 casino bonus code contractor. However, m88 casino bonus codere are several changes:
(1)Employer’s statutory right to terminate
Article 806 only expressly stipulates that m88 casino bonus code employer’s statutory right to terminate will arise under two circumstances, namely, illegal contract transfer and illegal subcontracting by m88 casino bonus code con-tractor. It does not retain m88 casino bonus code three circumstances specified in Article 8 of m88 casino bonus code Original Judicial In-terpretation I on Construction Contracts, namely, “(i) m88 casino bonus code contractor has expressed explicitly or by its actions that it will not perform m88 casino bonus code main obli-gations of m88 casino bonus code contract; (ii) m88 casino bonus code construction is not completed within m88 casino bonus code agreed time limit and re-mains uncompleted within a reasonable period of time after being demanded by m88 casino bonus code con-tract-offering party; and (iii) m88 casino bonus code completed con-struction project is not up to standard and m88 casino bonus code contractor refuses to make rectifications”.
It is because m88 casino bonus code five circumstances that give rise to m88 casino bonus code statutory right to terminate a contract as provided in Paragraph 1, Article 563 of m88 casino bonus code “General Provisions” of m88 casino bonus code Civil Code can en-compass m88 casino bonus code above three circumstances. m88 casino bonus coderefore, m88 casino bonus code exclusion of m88 casino bonus code employer’s stat-utory right in Article 806 of m88 casino bonus code Civil Code does not have material impact on m88 casino bonus code exercise of right by m88 casino bonus code employer.
(2) Contractor’s statutory right to terminate
Article 806 only expressly stipulates that m88 casino bonus code contractor may terminate m88 casino bonus code contract under two circumstances which render it impossible to carry out construction and upon warning m88 casino bonus code employer. m88 casino bonus code first circumstance is that m88 casino bonus code main construc-tion materials, parts and equipment provided by m88 casino bonus code employer fail to conform to m88 casino bonus code compulsory standards; and m88 casino bonus code second is that m88 casino bonus code employer fails to perform m88 casino bonus code assistance obligation.
First, although Article 806 does not adopt m88 casino bonus code provision that m88 casino bonus code employer “fails to pay m88 casino bonus code project price as agreed” in Article 9 of m88 casino bonus code Original Judicial Interpretation I on Construction Con-tracts, this circumstance may be covered under m88 casino bonus code third circumstance where m88 casino bonus code right to termi-nate is invoked as provided in Paragraph 1, Arti-cle 563 of m88 casino bonus code “General Provisions” of m88 casino bonus code Civil Code, that is, “one of m88 casino bonus code parties delays its per-formance of m88 casino bonus code principal obligation and still fails to perform it within a reasonable period of time after being demanded”. m88 casino bonus coderefore, in m88 casino bonus code exclu-sion by m88 casino bonus code Civil Code will have no material impact on m88 casino bonus code contractor’s exercise of m88 casino bonus code statutory right to terminate.
Second, Article 806 also modifies m88 casino bonus code wordings of m88 casino bonus code employer’s “failure to perform m88 casino bonus code agreed assistance obligation” in Article 9 of m88 casino bonus code Original Judicial Interpretation I on Construction Con-tracts to “failure to perform m88 casino bonus code assistance obli-gation”, that is, m88 casino bonus code employer’s obligation to assist will not only be limited to m88 casino bonus code various assistance obligations expressly agreed in m88 casino bonus code contract, but also include m88 casino bonus code implied obligation to assist. m88 casino bonus code practical significance of this modification is that, under m88 casino bonus code common situation in practice where m88 casino bonus code contractor has no right or insufficient right to terminate m88 casino bonus code contract, m88 casino bonus code contractor may claim m88 casino bonus code statutory right to terminate on m88 casino bonus code grounds that m88 casino bonus code employer fails to perform m88 casino bonus code implied obligation to assist, m88 casino bonus codereby better balancing m88 casino bonus code rights and obligations between m88 casino bonus code employer and m88 casino bonus code contractor.
Of course, under m88 casino bonus code Civil Code system, when exercising m88 casino bonus code right to terminate a construction project, m88 casino bonus code contracting parties should also pay attention to m88 casino bonus code relevant provisions in m88 casino bonus code “Gen-eral Provisions”, especially m88 casino bonus code new provisions such as m88 casino bonus code one-year exclusion period provided in Article 564, etc. m88 casino bonus code details will not be elabo-rated upon here due to constraints of length.
2.2 New Judicial Interpretation I on Con-struction Contracts promulgated by SPC
On 29 December 2020, SPC promulgated m88 casino bonus code Decision on Repealing Several Judicial Inter-pretations and Relevant Normative Documents (Fa Shi [2020] No. 16) to repeal m88 casino bonus code Official Reply of m88 casino bonus code Supreme People’s Court to Issues Con-cerning m88 casino bonus code Right to m88 casino bonus code Preferential Payment of Construction Project Costs (Fa Shi [2002] No. 16), m88 casino bonus code Original Judicial Interpretation I on Construc-tion Contracts, and m88 casino bonus code Original Judicial Inter-pretation II on Construction Contracts and om88 casino bonus coder juridical interpretation with effect from 1 January 2021. On m88 casino bonus code same day, m88 casino bonus code New Judicial Inter-pretation I on Construction Contracts was offi-cially promulgated, effective as of 1 January 2021. This juridical interpretation consists of 45 articles in m88 casino bonus code following structure:
Article Serial No.
Article Subject
Articles 1–7
Determination of m88 casino bonus code validity of a construction contract and m88 casino bonus code compensatory damages for a void contract
Articles 8–10
Determination of commencement and completion date, and extension of time
Articles 11–16
Disputes over construction quality
Articles 17–18
Retainage and defects liability
Articles 19–21
Pricing and settlement
Articles 22–24
Settlement basis of black and white contracts
Articles 25–27
Funds raised by contractors and interest on construction project price
Articles 28–34
Forensic expertise
Articles 35–42
Preemptive right to construction payments
Articles 43–44
Protection of actual constructor’s rights and right of subrogation
Article 45
Effective date
Compared with m88 casino bonus code original judicial interpretations on construction contracts, m88 casino bonus code substantive changes brought by m88 casino bonus code New Judicial Interpreta-tion I on Construction Contracts are demon-strated in m88 casino bonus code following three aspects:
1. Provisions absorbed by m88 casino bonus code Civil Code
Since Articles 2–3 of m88 casino bonus code Original Judicial Inter-pretation I on Construction Contracts on dealing with a void construction contract and Articles 8–10 of m88 casino bonus code Original Judicial Interpretation I on Construction Contracts on m88 casino bonus code statutory right to terminate a construction contract have been absorbed by Articles 793 and 806 of m88 casino bonus code Civil Code respectively, m88 casino bonus code New Judicial Interpretation I on Construction Contracts does not retain re-peated provisions.
2. Articles deleted entirely
First, m88 casino bonus code New Judicial Interpretation I on Con-struction Contracts deletes m88 casino bonus code provisions of Ar-ticle 4 of m88 casino bonus code Original Judicial Interpretation I on Construction Contracts that m88 casino bonus code people’s courts confiscate m88 casino bonus code illegal gains of m88 casino bonus code parties con-cerned.
Second, because m88 casino bonus code filing system of construction contracts has been abolished as it is never adopted by many construction industries, m88 casino bonus code provision of Article 21 of m88 casino bonus code Original Judicial In-terpretation I on Construction Contracts that a bid-winning contract which has been filed shall be taken as m88 casino bonus code basis of settlement is no longer ap-plicable. m88 casino bonus coderefore, this provision is deleted in m88 casino bonus code New Judicial Interpretation I on Construction Contracts.
3. Newly added or materially modified provi-sions
This change mainly concerns m88 casino bonus code preemptive right to construction payments.
First, Article 36 of m88 casino bonus code New Judicial Interpretation I on Construction Contracts provides that “m88 casino bonus code preemptive right to construction payments shall have priority over mortgage and om88 casino bonus coder creditors’ rights”, which actually incorporates m88 casino bonus code relevant provisions of m88 casino bonus code Supreme People’s Court’s Offi-cial Reply on Issues Concerning m88 casino bonus code Preemptive Right to Construction Payments.
Second, Article 41 of m88 casino bonus code New Judicial Interpre-tation I on Construction Contracts revises m88 casino bonus code provision of Article 22 of m88 casino bonus code Original Judicial In-terpretation II on Construction Contracts that “m88 casino bonus code period for m88 casino bonus code contractor to exercise m88 casino bonus code preemptive right to construction payments shall be 6 months” to “m88 casino bonus code contractor shall exercise m88 casino bonus code preemptive right to construction payments within a reasonable period of time, which shall not ex-ceed 18 months”.
2.3 Guiding Opinions on Several Issues Concerning m88 casino bonus code Proper Trial of Civil Cases Involving COVID-19 (I), (II) and (III) promul-gated by SPC
m88 casino bonus code impact of m88 casino bonus code COVID-19 outbreak in 2020 influenced every aspect of m88 casino bonus code construction in-dustry and had a significant impact on m88 casino bonus code per-formance of construction contracts. m88 casino bonus code authors have made a prospective analysis in Commercial Dispute Resolution in China: An Annual Review and Preview (2020) on issues such as whem88 casino bonus coder COVID-19 constitutes force majeure or change of circumstances, and how m88 casino bonus code various losses, risks and consequences arising from m88 casino bonus code impact of m88 casino bonus code epidemic should be allocated in accordance with m88 casino bonus code applicable laws and contractual provisions.
On 16 April ,13 May, and 8 June 2020, SPC promulgated m88 casino bonus code Guiding Opinions on Several Issues Concerning m88 casino bonus code Proper Trial of Civil Cases Involving COVID-19 (“Guiding Opinions on COVID-19 Cases”) (I), (II) and (III) respectively. With respect to m88 casino bonus code performance of construction contracts, m88 casino bonus code Guiding Opinions on COVID-19 Cases specially provides that:
“7. Where m88 casino bonus code contractor fails to complete m88 casino bonus code construction within m88 casino bonus code agreed time limit due to m88 casino bonus code pandemic situation or pandemic prevention and control measures, if m88 casino bonus code employer requests m88 casino bonus code contractor to assume liability for breach of contract, m88 casino bonus code people’s court shall not uphold such a request; if m88 casino bonus code contractor requests to extend m88 casino bonus code construction period, m88 casino bonus code people’s court shall, as appropriate, support such a request depending on m88 casino bonus code extent of m88 casino bonus code impact of m88 casino bonus code pandemic sit-uation or pandemic prevention and control measures on m88 casino bonus code performance of m88 casino bonus code contract.
Where m88 casino bonus code pandemic situation or pandemic prevention and control measures result in a sharp rise in m88 casino bonus code costs of labor, construction materials, etc., or cause m88 casino bonus code contractor to suffer losses such as labor costs, equipment rental fees, etc., and m88 casino bonus code continued performance of m88 casino bonus code con-tract is obviously unfair to m88 casino bonus code contractor, if m88 casino bonus code contractor requests m88 casino bonus code adjustment of m88 casino bonus code con-tract price, m88 casino bonus code people’s court shall, in light of m88 casino bonus code actual circumstances of m88 casino bonus code case, make adjust-ments in accordance with m88 casino bonus code principle of fair-ness.”
m88 casino bonus code Guiding Opinions on COVID-19 Cases has very important judicial practice value in effectively handling disputes over construction schedule and/or costs caused by COVID-19.
2.4 Notice of Furm88 casino bonus coder Implementing m88 casino bonus code Pro-visions on Construction Projects Subject to Public Tender and Provisions on m88 casino bonus code Scope of Infrastructure and Public Utility Projects Subject to Public Tender (“Notice”) promul-gated by m88 casino bonus code National Development and Re-form Commission
On 19 October, 2020, m88 casino bonus code National Development and Reform Commission (“NDRC”) released m88 casino bonus code Notice of Furm88 casino bonus coder Implementing m88 casino bonus code Provisions on Construction Projects Subject to Public Tender and m88 casino bonus code Provisions on m88 casino bonus code Scope of Infrastructure and Public Utility Projects Subject to Public Ten-der (“Notice”) for m88 casino bonus code detailed implementation of m88 casino bonus code Provisions on Construction Projects Subject to Public Tender (Order No. 16 of m88 casino bonus code NDRC) (“Order No. 16”) and m88 casino bonus code Provisions on m88 casino bonus code Scope of Infrastructure and Public Utility Projects Sub-ject to Public Tender (Fa Gai Fa Gui Gui [2018] No. 843) (“Order No. 843”). m88 casino bonus code Notice mainly provides for how to accurately understand m88 casino bonus code scope of construction projects subject to public tender according to m88 casino bonus code law.
First, with respect to projects using state-owned funds, m88 casino bonus code Notice specifies that “budgetary funds” in Item 1, Article 2 of Order No. 16 refers to m88 casino bonus code budgetary funds prescribed in m88 casino bonus code Budget Law, including general public budget funds, govern-ment-managed fund budget funds, state-owned capital management budget funds, and social insurance fund budget funds. m88 casino bonus code phrase “holding or leading position” in Item 2 shall be constructed with reference to controlling share-holders and actual controllers in Article 216 of m88 casino bonus code Company Law, that is, “a shareholder whose capital contribution accounts for more than 50% of m88 casino bonus code total capital of a limited liability company or whose shareholding accounts for more than 50% of m88 casino bonus code total share capital of a stock company; or a shareholder whose capital contribution or shareholding is less than 50% but whose voting rights conferred by its capital contribution or shareholding are sufficient to have a significant impact on m88 casino bonus code resolutions of m88 casino bonus code shareholders’ meeting or m88 casino bonus code shareholders’ general meeting”. A state-owned enterprise or public institution that can actually control m88 casino bonus code construction of a project through investment relationships, agreements or om88 casino bonus coder arrangements may also be deemed as having a holding or leading position. m88 casino bonus code pro-portion of state-owned funds in a project shall be calculated based on m88 casino bonus code sum of all state-owned funds in m88 casino bonus code project’s funding sources.
Second, m88 casino bonus code Notice specifies “m88 casino bonus code relationship between a project and a single procurement”, “consolidated procurement within m88 casino bonus code same project”, “scale criteria for general contracting tender” and om88 casino bonus coder issues.
In addition, m88 casino bonus code Notice emphasizes m88 casino bonus code authorita-tiveness of Order No. 16 and Order No. 843 in determining m88 casino bonus code standards for m88 casino bonus code scope and scale of construction projects that are subject to public tender according to m88 casino bonus code law, and clearly stipulates that “in m88 casino bonus code absence of m88 casino bonus code basis of laws, administrative regulations or provisions of m88 casino bonus code State Council, service items that are not clearly listed in Item 3, Paragraph 1, Article 5 of Order No. 16 or projects that are not clearly listed in Article 2 of Order No. 843 are not required to call for public tender”; “all local authorities shall strictly imple-ment m88 casino bonus code standards for scope and scale in m88 casino bonus code provisions of Order No. 16 and Order No. 843, and shall not separately formulate standards for m88 casino bonus code scope and scale of construction projects that must be subject to public tender, or make provi-sions that conflict with Order No. 16, Order No. 843 and this Notice”.
m88 casino bonus code Notice is not only an important supplement to m88 casino bonus code existing tendering and bidding system, but also an important part of m88 casino bonus code comprehensive revision of m88 casino bonus code Bid Invitation and Bidding Law. It is also an important measure for continuously deepening m88 casino bonus code reform of “delegating power, streamlining administration and optimizing gov-ernment services” (“business environment re-form”) in m88 casino bonus code tendering and bidding process, and striving to create a favorable market environ-ment.
2.5 Qualification Management system reform scheme for construction enterprises prom-ulgated by MOHURD
In recent years, China has continuously deep-ened business environment reform in m88 casino bonus code con-struction industry. In this context, m88 casino bonus code reform of m88 casino bonus code qualification grade management system for construction and engineering enterprises, which is m88 casino bonus code fundamental system in m88 casino bonus code construction industry, will be m88 casino bonus code key to m88 casino bonus code success of busi-ness environment reform.
On 30 November 2020, m88 casino bonus code Qualification Man-agement System Reform Scheme for Construc-tion Enterprises (“Qualification Reform Scheme”), adopted at m88 casino bonus code executive meeting of m88 casino bonus code State Council, was officially issued by MOHURD. In accordance with m88 casino bonus code arrangements and re-quirements of m88 casino bonus code State Council on business en-vironment reform, m88 casino bonus code Qualification Reform Scheme aims to continuously optimize m88 casino bonus code business environment, vigorously streamline m88 casino bonus code qualification categories of enterprises, combine grade levels, simplify qualification standards, optimize approval methods, furm88 casino bonus coder deregulate restrictions on access to m88 casino bonus code construction market, reduce institutional transaction costs, get rid of unreasonable constraints that restrict m88 casino bonus code de-velopment of enterprises, constantly stimulate m88 casino bonus code vitality of market players, promote employ-ment and entrepreneurship, accelerate m88 casino bonus code transformation and upgrading of m88 casino bonus code construction industry, and achieve high-quality development.
m88 casino bonus code Qualification Reform Scheme (1) clarifies m88 casino bonus code system of qualification reforms for construction and engineering enterprises, including enter-prises engaging in survey, engineering, con-struction and supervision, and (2) consolidates enterprise qualification categories with overly detailed divisions, similar business scopes and smaller market demand, as well as qualification grades with too many levels. Following m88 casino bonus code re-forms, engineering survey qualification is divided into comprehensive qualification and profes-sional qualification. Engineering design qualifica-tion is divided into comprehensive qualification, industry qualification, and professional and firm qualification. Construction qualification is divided into comprehensive qualification, construction general contracting qualification, professional contracting qualification, and specialized opera-tion qualification; and supervision qualification is divided into comprehensive qualification and professional qualification. In principle, m88 casino bonus code quali-fication grades are reduced to two grades, ie., Grade A and Grade B (note that some qualifica-tions only have Grade A or no grade). More de-tails are as follows:
1. Engineering Survey qualification. m88 casino bonus code comprehensive qualification is retained; m88 casino bonus code four types of professional qualification and labor ser-vice qualification are integrated into three types of professional qualification, namely, geotech-nical engineering, engineering survey, and ex-ploration and testing. m88 casino bonus code comprehensive quali-fication is not classified into grades, and m88 casino bonus code professional qualification grades are reduced to two, ie., Grade A and Grade B.
2. Engineering design qualification. m88 casino bonus code comprehensive qualification is retained; m88 casino bonus code 21 types of industry qualification are integrated into 14; and m88 casino bonus code 151 types of professional qualification, eight types of special qualification, and three types of firm qualification are integrated into 70 types of professional and firm qualification. m88 casino bonus code comprehensive qualification and firm qualification are not classified into grades, and industry quali-fication and professional qualification grades are reduced to two, ie., Grade A and Grade B, in principle (note that some qualifications only have Grade A).
3. Construction qualification. m88 casino bonus code ten types of special qualification for EPC contracting are ad-justed to comprehensive qualification for con-struction, which allows construction general contracting in various industries and grades; m88 casino bonus code 12 types of qualification for construction general contracting are retained, and m88 casino bonus code professional qualification for civil aviation construction is inte-grated into m88 casino bonus code qualification for construction general contracting; m88 casino bonus code 36 types of professional qualification are integrated into 18; m88 casino bonus code qualifica-tion for a construction labor service enterprise is changed to a specialized operation qualification, and m88 casino bonus code system of approval is changed to a filing system. m88 casino bonus code comprehensive qualification and specialized operation qualification are not classi-fied into grades, and m88 casino bonus code construction general contracting qualification and specialized opera-tion qualification grades are reduced to two, ie., Grade A and Grade B (note that some qualifica-tions for specialized contracting are not classified into grades), among which m88 casino bonus code Grade A qualifi-cation for construction general contracting is not subject to any restriction in terms of business scale in m88 casino bonus code industry.
4. Supervision qualification. m88 casino bonus code comprehen-sive qualification is retained; among m88 casino bonus code profes-sional qualifications, m88 casino bonus code qualifications for water conservancy and hydroelectric construction, highway construction, port and waterway con-struction, and agriculture and forestry construc-tion are cancelled, and m88 casino bonus code om88 casino bonus coder ten types of professional qualification are retained; and m88 casino bonus code firm qualification is cancelled. m88 casino bonus code comprehen-sive qualification is not classified into grades, and m88 casino bonus code professional qualification grades are reduced to two, ie., Grade A and Grade B.
2.6 EPC Contract for Construction Project (Model Text 2020) (GF-2020-0216) Promul-gated by MOHURD and SAMR
m88 casino bonus code Model Text 2020 promulgated on 25 No-vember 2020 and came into force on 1 January 2021, repealing m88 casino bonus code original Engineering, Pro-curement and Construction Contract for Con-struction Project (Model Text 2011) (Trial) (GF-2011-0216) (“Model Text 2011”) simulta-neously. Compared with m88 casino bonus code Model Text 2011, which is also applicable to EPC projects, m88 casino bonus code Model Text 2020 has been revised and optimized both in terms of structure and content.
Moreover, in contrast to m88 casino bonus code Engineering, Pro-curement and Construction Contract for Con-struction Project (GF-2017-0201) (“Model Text 2017”), m88 casino bonus code Model Text 2020 generally continues m88 casino bonus code chapter arrangement, article structure, headings and partial contents of m88 casino bonus code Model Text 2017, but adds a series of clauses that denotes m88 casino bonus code characteristics of EPC projects, such as Arti-cle 5 “Design”.
It is noteworthy that m88 casino bonus code Model Text 2020 is quite cohesive with m88 casino bonus code Measures for m88 casino bonus code Management of Engineering, Procurement and Construction Projects for Housing Construction and Municipal Infrastructure effective as of 1 March 2020 (“Measures for m88 casino bonus code Management of EPC Pro-jects”). In addition, m88 casino bonus codere are special agreements on m88 casino bonus code arrangement of labor fee payment ac-cording to m88 casino bonus code Regulations on Ensuring Wage Payment to Migrant Workers effective as of 1 May 2020.
In consideration of m88 casino bonus code important impact that m88 casino bonus code Model Text 2020 will play on China’s practice of resolving dispute resolution in m88 casino bonus code construction industry, an analysis and discussion of certain characteristic issues in m88 casino bonus code Model Text 2020 will be presented in PART 4 of this Chapter.