Construction Law of the People's Republic of China (2019 Amendment)

Construction Law of the People's Republic of China (2019 Amendment) Construction Law of the People's Republic of China (Adopted by the 28th Session of the Standing Committee of the Eighth National People's Congress on October 1, 1997, amended for the first time in accordance with the Decision of the 20th Session of the Standing Committee of the 11th National People's Congress Concerning Amendment to the Construction Law of the People's Republic of China on April 22, 2011; amended for the second time in accordance with the Decision of the Standing Committee of the National People's Congress to Amend Eight Laws Including the Construction Law of the People's Republic of China at the 10th Session of the Standing Committee of the Thirteenth National People's Congress of the People's Republic of China on April 23, 2019) Contents CHAPTER I GENERAL PROVISIONS CHAPTER II CONSTRUCTION LICENSING SECTION I WORKING LICENSES FOR CONSTRUCTION PROJECTS SECTION II QUALIFICATIONS OF CONSTRUCTORS CHAPTER III CONTRACT AWARDING AND CONTRACTING OF CONSTRUCTION PROJECTS SECTION I GENERAL RULES SECTION II CONTRACTING AWARDING SECTION III CONTRACTING CHAPTER IV SUPERVISION OF CONSTRUCTION PROJECTS CHAPTER V MANAGEMENT OF CONSTRUCTION SAFETY AND OPERATION CHAPTER VI MANAGEMENT OF CONSTRUCTION PROJECT QUALITY CHAPTER VII LEGAL RESPONSIBILITIES CHAPTER VIII APPENDIX CHAPTER I GENERAL PROVISIONS Article 1 With a view to strengthening supervision and regulation of construction activities, maintaining construction market order, ensuring the quality and safety of construction projects and promoting the healthy development of construction industry, this law is hereby formulated. Article 2 Construction activities and supervision of construction activities conducted within the territory of the People's Republic of China shall abide by this law. The term “construction activities” as mentioned in this Law shall refer to the construction of all kinds of houses and buildings and the ancillary facilities thereof and the installation of their supporting lines, pipes and equipment. Article 3 Construction activities have to guarantee the quality and safety of construction projects and comply with the State's safety standards for construction projects. Article 4 The State assists the development of construction industry, supports research on construction science and technology in order to raise the level of housing and construction design, encourages saving of energy and environmental protection and advocates the adoption of advanced technology, advanced equipment, advanced process, new building materials and modern managerial methods. Article 5 Conduct of construction activities shall observe laws and regulations and should in no way undermine social and public interests as well as the legitimate interests of others. No unit or individual shall impede or obstruct the construction activities conducted according to law. Article 6 The competent construction administrative department under the State Council shall exercise unified supervision and regulation over construction activities of the whole country. CHAPTER II CONSTRUCTION LICENSING SECTION I WORKING LICENSES FOR CONSTRUCTION PROJECTS Article 7 Before the start of construction projects, construction units shall, in accordance with the relevant provisions of the State, apply to the competent construction administrative departments under the prefecture-county governments or above for construction licenses, except for small projects below the threshold value set by the competent construction administrative department under the State Council. Construction projects which have obtained approval of work start reports in accordance with the power limits and procedure stipulated by the State Council are no longer required to apply for construction licenses. Article 8 To apply for a construction license, the following conditions shall be met: (1) The land use approval formalities for the construction project have been gone through; (2) A construction project planning license is held if the law so requires ; (3) If dismantlement is required, the progress of dismantlement shall comply with construction requirements; (4) A construction contractor has been designated; (5) Funding arrangements, construction drawings and technical information as needed for construction are in place; (6) (6) Specific measures to ensure quality and safety of the project are in place. The construction administrative authorities shall issue a construction license within seven days from the date of receipt of an application if it meets the conditions. Article 9 Units in charge of construction should start to build the projects within three months since obtaining construction licenses. If work cannot start on schedule, applications should be filed to the license issuing agencies for delay, which shall only be permitted twice in maximum for each case, each permission of delay covering a maximum period of three months. In cases of those projects that neither start on schedule nor apply for delay or exceed the period of permitted delay, the validity of the working licenses automatically expires. Article 10 For projects under construction that come to a halt due to some reasons, the constructing units should report to the license issuing agencies within one month from the stoppage of construction and should also well maintain and manage the construction projects in accordance with provisions. When construction work resumes, reports should be filed with the license issuing agencies; Before the resumption of work on construction projects which have stopped for over one year, units in charge of construction shall apply to the license issuing agencies for verification of their working licenses. Article 11 For construction projects with approval of work-start reports in light of the relevant provisions of the State Council which fail to start construction on schedule or suspend the construction work due to certain reasons, the constructors should report the cases timely to the approving authorities. If the period of non-start of work due to certain reasons exceeds six months, the constructors shall re-go through the formalities of approval for work-start reports. SECTION II QUALIFICATIONS OF CONSTRUCTORS Article 12 Construction engineering enterprises, prospecting units, design units and project supervisory units which engage in construction activities shall possess the following conditions: (1) Possession of registered capital that complies with the State provisions; (2) Possession of specialized technical personnel with statutory professional qualifications consistent with the construction activities they engage in; (3) Possession of technologies and equipment that are necessary for related construction activities. (4) Other conditions as stipulated by laws and administrative regulations. Article 13 Construction engineering enterprises, prospecting units, design units and project supervisory units are rated into different classes according to their registered capital, professionals and technicians, technical equipment and performance record of completed construction projects, etc. Only when they pass qualification examinations and obtain appropriate qualification certificates may they engage in construction activities commensurate to the scope of their qualification classes. Article 14 Specialized technical personnel engaging in construction activities shall attain the relevant certificates of professional qualification and conduct building activities within the scope of their certificates of professional qualifications. CHAPTER III CONTRACT AWARDING AND CONTRACTING OF CONSTRUCTION PROJECTS SECTION I GENERAL RULES Article 15 Contract awarding units and contractors for construction projects shall conclude written covenants, specifying the rights and obligations of each party. Contract awarding units and contractors should fully fulfill their contractual obligations. Failure to fulfill contractual obligations is subject to contract-breach responsibilities under the laws. Article 16 The tendering and bidding activities for contracting of construction projects shall follow the principle of openness, justice and equal competition, and contractors should be selected based on their merits. Tendering of and bidding for construction projects which are not covered by this law shall follow the relevant laws on tendering and bidding. Article 17 Contract awarding units and their staff shall not take bribery, commissions or seek other benefits in the process of contract awarding for construction projects. Contractors and staff members thereof shall not undertake projects through illegitimate means such as offering bribes, commissions or other benefits to the units contracting out the projects or staff members thereof. Article 18 Construction cost of the projects shall be agreed upon in the contracts by both the contractors and the out-contracting units in accordance with relevant regulations of the State. For projects subject to public bidding, the construction cost shall be agreed upon in line with the provisions of the tendering law. The out-contracting units shall appropriate project funds in a timely manner in accordance with the provisions of the contracts. SECTION II CONTRACTING AWARDING Article 19 Construction projects shall be contracted through public bidding according to law and those not suitable for bidding can be contracted out directly. Article 20 For construction projects subject to open bidding, the out- contracting units shall, in accordance with legal procedures and methods, publish invitations for bid and provide tender documents containing major technical requirements of the projects subject to bidding, key contract terms, standards and methods for evaluation of bids as well as the procedures for the opening, evaluation and determination of bids. The bids shall be opened at the time and place specified in the tender document, after which the bids shall be evaluated and compared in accordance with the evaluation standards and procedures specified by the tender documents. Successful bidder shall be selected among the bidders with appropriate qualifications based on their merits. Article 21 The opening, evaluation and determination of bids in the process of tendering for construction projects shall be organized and implemented by the project owners and shall be subject to the supervision of relevant administrative departments. Article 22 For construction projects subject to bidding, the out- contracting units shall contract out the projects to the contracting units which have won the bid in accordance with law. For construction projects subject to direct contracting, the out-contracting units shall contract out the project to the contracting units with appropriate qualifications. Article 23 The government and its subordinate departments shall not abuse their administrative power by requiring the out-contracting units to contract out the construction projects to designated contracting units. Article 24 Overall contracting of projects is encouraged and the contracting of construction projects in parts shall be prohibited. The out-contracting units of construction projects can contract out either the survey, design, construction and equipment purchase of the construction units to a single overall contracting unit or one or some of these tasks to an overall contracting unit. However, the out- contracting units shall not divide the construction projects which shall be undertaken by one contracting units into several parts for out- contracting to several different contracting units. Article 25 For building materials, components and equipment which shall be purchased by the project contracting units as specified by the contracts, the out-contracting units shall not designate the building materials, components and equipment for the projects to be purchased by the contracting units or designate manufacturers and suppliers thereof. SECTION III CONTRACTING Article 26 The project co......