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PROVISIONS ON THE ADMINISTRATION OF FOREIGN ENTERPRISES ENGAGING IN CONSTRUCTION PROJECT DESIGNING ACTIVITIES WITHIN THE PEOPLE'S REPUBLIC OF CHINA (TRIAL)
 
(Notice of the Ministry of Construction about Printing and Distributing the Provisions on the Administration of Foreign Enterprises Engaging in Construction Project Designing Activities (Trial) within the People's Republic of China (No. 78 of the Ministry of Construction), May 10, 2004: The Provisions on the Administration of Foreign Enterprises Engaging in Construction Project Designing Activities (Trial) within the People's Republic of China are formulated and shall come into force after 30 days of the promulgation)
     
     
SUBJECT : FOREIGN ENTERPRISES ENGAGING IN CONSTRUCTION PROJECT DESIGNING ACTIVITIES
ISSUING DEPARTMENT : MINISTRY OF CONSTRUCTION OF THE PEOPEL'S REPUBLIC OF CHINA (DISSOLVED)
ISSUE DATE : 05/10/2004
IMPLEMENT DATE : 06/09/2004
LENGTH : 1,382 words
TEXT :
Article 1. With a view to regulating the management of the foreign enterprises engaging in designing activities of construction projects within the People's Republic of China, the present Provisions are formulated in accordance with the Construction Law of the People's Republic of China, the Regulation on the Management of Survey and Design of Construction Projects, the Regulation on the management of Quality of Construction Projects, the Measures for Bid Invitation and Tendering of Survey and Design of Construction Projects and other laws, regulations and rules.


Article 2. The term "foreign enterprises" mentioned in the present Provisions refers to the enterprises registered outside the People's Republic of China for engaging in the construction project designing activities.


Article 3. Where a foreign enterprise provides construction project services such as offering preliminary (fundamental) designs for construction projects and construction drawings (detailed designs), etc. within the People's Republic of China by way of cross-border delivery, it shall abide by the present Provisions.

The present Provisions do not apply to the provision of program designs prior to the preliminary (fundamental) designs.


Article 4. Where a foreign enterprise is to undertake construction project designing business within the People's Republic of China, it shall select at least one Chinese designing enterprise with a construction project designing qualification certificate issued by the administrative department of construction to carry out Sino-foreign cooperative designing activities (hereinafter referred to cooperative designing), and shall undertake designing business within the scope of the qualification certificate of the said Chinese designing enterprise(s).


Article 5. A construction project design contract based on cooperative designing shall be concluded between the Chinese designing enterprise as a cooperative party and the construction entity or between both the Chinese and foreign designing enterprises and the construction entity. The construction design contract shall stipulate explicitly the rights and obligations of both parties, and shall be written in Chinese.


Article 6. The construction entity shall be responsible for the preliminary qualification examination of the designing capacities of the foreign enterprise that is to participate in cooperative designing. The foreign enterprise shall not participate in the cooperative designing unless it meets the requirements for the preliminary qualification examination.


Article 7. When the construction entity conducts preliminary qualification examination over a foreign enterprise, it may demand it to present the following valid certification materials required by the construction projects. All the certification materials shall be in the official language of the country where the foreign enterprise is located and must be accompanied by a Chinese translation.

(1) The enterprise registration certification issued by the administrative department of the government of the country where the foreign enterprise is located;

(2) The credit certification and enterprise insurance certification issued by a financial institution of the country where the enterprise is located;

(3) The enterprise project designing performance certification issued by the administrative department of the government where the foreign enterprise is located or relevant industrial organization or notary institution;

(4) The designing permit certification issued by the administrative department of the government where the foreign enterprise is located or relevant industrial organization;

(5) The ISO 9000 quality standard authentication certificate issued by the corresponding international institution;

(6) The resumes, identification certification, highest education certification and professional practice registration certification of all the technicians who participate in Chinese project designing;

(7) Letter of intent for cooperative designing signed with a Chinese enterprise; and

(8) Other pertinent materials.


Article 8. When a foreign enterprise cooperates with a Chinese designing enterprise in designing, it shall enter into a cooperative designing agreement with it according to relevant laws and regulations of China so as to stipulate explicitly the rights and obligations of both parties. The cooperative designing agreement shall be accompanied by a Chinese translation.

A cooperative designing agreement shall specify the following:

(1) The name, registered place of each cooperative designing party, and the name, nationality, number of identification certification, domicile and contact information of its legal representative;

(2) The name, place and scale of the construction project;

(3) The scope, period and form of cooperative designing, the requirements for the designing content, depth, quality and working progress;

(4) The designing tasks, rights and obligations of each cooperative designing party;

(5) The composition of the fees for cooperative designing, revenue sharing and liabilities for tax payments;

(6) The liabilities for breach of the agreement and how to settle disputes relating to the agreement;

(7) The conditions for the effectiveness of the agreement, and date and place of the agreement; and

(8) Other matters stipulated by all parties.


Article 9. The construction project design contract (duplicate), cooperative designing agreement (duplicate) and the materials (photocopies) listed in Article 7 of the present Provisions shall be reported to the administrative department for construction where the project is located for archival purposes.


Article 10. A foreign designing enterprise that undertakes any construction project designing within the People's Republic of China shall meet the mandatory standards on construction projects and the requirements for making project designing documents.

If there is no corresponding mandatory standard on an item related to a construction project, Article 5 of the Provisions on the Supervision over the Mandatory Standards on Construction Projects (Order No. 81of the Ministry of Construction) shall apply.


Article 11. In accordance with the Construction Law of the People's Republic of China, the City Planning Law of the People's Republic of China and other laws and regulations, the Sino-foreign cooperative designing documents subject to examination by the relevant departments of the Chinese Government shall:

(1) Be accompanied by a Chinese translation;

(2) Meet the relevant requirements of China for construction project designing documents;

(3) Adopt Chinese statutory measurement units;

(4) Ensure that the cover of preliminary (fundamental) design documents include the name of the project and all the cooperative enterprises, and the first page must include the names and signatures (seals) of all the cooperative enterprises and their respective legal representative, main technical managers and project managers;

(5) Ensure that the captions for the documents of construction drawings (detailed designs) shall include the names of all the cooperative designing parties and bear the signatures of the designing personnel. Other matters shall be handled according to the pertinent provisions of China on the drawings of project designing documents; and

(6) Ensure that the documents of preliminary (fundamental) designs and the documents of construction drawings (detailed designs) shall not validated until they have been examined, confirmed and signed by Chinese certified architects, certified engineers and other certified practitioners and shall have been affixed thereto the seal of the Chinese designing enterprise.

With regard to a specialty to which the certified practicing system for project designing is inapplicable, the documents of designs shall not be validated until they have been examined, confirmed and signed by the professional technical managers of the Chinese designing enterprise and shall have been affixed thereto the seal of the Chinese designing enterprise.


Article 12. The standards of China on designing fees shall be referred to in the payment of fees charged by a foreign designing enterprise undertaking the construction project designs. The foreign designing enterprise shall pay taxes on designing fees to the Chinese Government according to relevant laws and regulations.

In the event that the foreign enterprise provides design documents which need the examination and approval as well as the confirmation of the Chinese designing enterprise according to the relevant standards and requirements of the state, the examination and confirmation fee shall be decided by both parties upon negotiation with reference to the international practice or according to the actual workload.


Article 13. The present provisions shall apply as a reference to the designing institutions of Hong Kong, Macao and Taiwan engaging in construction project designing activities.


Article 14. Where a foreign enterprise violates the present Provisions, it shall be punished by the relevant departments of the Chinese Government according to relevant laws, regulations and rules, with its bad records shall be publicized through pertinent medium, and a notice be given to the local government and relevant local guild of the place where the foreign enterprise is located.


Article 15. Foreign enterprises are prohibited from participating in designing secret construction projects, emergency elimination and disaster relief projects and other construction projects that our country have made no commitments to open.


Article 16. The present Provisions shall be implemented 30 days after they are promulgated.
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