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MEASURES FOR THE ADMINISTRATION ON THE CONSTRUCTION BY SUBCONTRACT OF HOUSE-BUILDING AND MUNICIPAL INFRASTRUCTURE PROJECTS
 
(Order of the Ministry of Construction of the People's Republic of China (No.124), February 3, 2004: The Measures for the Administration on the Construction by Subcontract of House-building and Municipal Infrastructure Projects, which were adopted at the 21st executive meeting of the Ministry of Construction on November 8, 2003, are hereby promulgated, and shall be implemented as of April 1, 2004)
     
     
SUBJECT : HOUSE-BUILDING AND MUNICIPAL INFRASTRUCTURE PROJECTS; SUBCONTRACT
ISSUING DEPARTMENT : THE MINISTRY OF CONSTRUCTION OF THE PEOPLE'S REPUBLIC OF CHINA
ISSUE DATE : 02/03/2004
IMPLEMENT DATE : 04/01/2004
LENGTH : 1,812 words
TEXT :
Article 1. The present Measures are formulated in accordance with the Construction Law of the People's Republic of China, the Bidding and Tendering Law of the People's Republic of China and the Regulations on Quality Control of Construction Projects, as well as the relevant laws and regulations, for the purpose of regulating the activities of the construction by subcontract of house-building and municipal infrastructure projects, maintaining the order of construction market, and ensuring the quality of projects and the safety of construction.


Article 2. The present Measures shall be applicable to the activities of the construction by subcontract of house-building and municipal infrastructure projects within the territory of the People's Republic of China, and the supervision and administration on such activities.


Article 3. The competent administrative department of construction under the State Council shall be responsible for the work of supervision and administration on the construction by subcontract of house-building and municipal infrastructure projects nationwide.

The competent administrative departments of construction of the local people's governments above the county level shall be responsible for supervising and administering the construction by subcontract of house-building and municipal infrastructure projects within their own administrative regions.


Article 4. The "construction by subcontract" mentioned in the present Measures refers to the activities that a construction enterprise contracts the specialized projects or labor service in the house-building and municipal infrastructure projects it undertakes to other construction enterprises.


Article 5. The construction of house-building and municipal infrastructure projects by subcontract shall include the specialized projects by subcontract and labor service by subcontract.

The "subcontracting of a specialized project" mentioned in the present Measures, refers to the activity that an enterprise which undertakes the whole of a construction project (hereinafter referred to the contract letting party of a specialized project by subcontract) subcontracts the specialized project of the project it undertakes to other construction enterprises with corresponding qualifications (hereinafter referred to the contractor of a specialized project by subcontract).

The subcontracting of labor service mentioned in the present Measures, refers to the activity that an enterprise which undertakes the whole of a construction project or an enterprise of a specialized contract (hereinafter referred to labor service contract letting party) subcontracts the labor service of a project it undertakes to an enterprise of labor service by subcontract (hereinafter referred to the labor service contractor).

The contract letting party of a project by subcontract mentioned in the present Measures shall include the contract letting party of a specialized project by subcontract and the labor service contract letting party mentioned in paragraphs 2 and 3 of this Article. The contractor of a project by subcontract shall include the contractor of a specialized project by subcontract and labor service contractor mentioned in paragraphs 2 and 3 of this Article.


Article 6. The activities of construction by subcontract of house-building and municipal infrastructure projects shall be carried out according to law.

The development of enterprises undertaking specialized contracts or undertaking labor services by subcontract shall be encouraged, the open trading of subcontract activities in the corporeal construction market shall be advocated, so as to improve the trading function of projects by subcontract of the corporeal construction market.


Article 7. No construction entity may directly appoint contractors of a project by subcontract. No entity or individual may interfere with the subcontract activities carried out according to law.


Article 8. A contractor of a project by subcontract shall have the corresponding qualifications and shall undertake business within the scope of its qualification grade.

No individual may undertake business of a project by subcontract.


Article 9. The subletting of a specialized project shall also be approved by a construction entity in addition to being stipulated in the general construction contract. A contractor of a specialized project by subcontract must finish the project it undertakes by itself.

The subletting of labor service shall be stipulated by the labor service contract letting party and the labor service contractor through a labor contract. A labor service contractor shall finish the task it undertakes by itself.


Article 10. The contract letting party of a project by subcontract and the contractor of a project by subcontract shall sign a subcontract according to law, and perform their stipulated duties according to the contract. The time for paying the project funds and wages of labors, the way of settlement, and the corresponding measures for ensuring the payment on time shall be stipulated in the subcontract to ensure the payment of the project fund and wages of labors.

The contract letting party of a project by subcontract shall, within 7 working days after signing the subcontract, submit the subcontract to and put it on record at the competent administrative departments of construction of the local people's governments above the county level at the place where the project is constructed. In case there are major alterations in the subcontract, the contract letting party of a project by subcontract shall, within 7 working days after the alteration, submit the alteration agreement to the original record-keeping department for putting it on record.


Article 11. A contract letting party of a project by subcontract shall establish a project management organ to organize and manage the construction activities of the project it undertakes.

A project management organ shall have the technical or economic managers fitting in with the scale of the contracting project or the degree of complexity of technology, among whom, the persons responsible for the project, technology, business accounting of the project, quality control, and the safety control shall be the employees of the corresponding entity. The specific requirements for them shall be formulated by the competent administrative departments of construction of the people's governments of provinces, autonomous regions, and municipalities directly under the Central Government.

The employees of the corresponding entity mentioned in the preceding paragraph, refer to the employees who have legal relations of personnel or labor contract, wages and social security with the corresponding entity.


Article 12. A contract letting party of a project by subcontract may require the contractor of a project by subcontract to provide performance guarantee for the project by subcontract. If, after the contractor of a project by subcontract has provided guarantee, it requires the contract letting party of a project by subcontract to provide payment bond for the project by subcontract, the contract letting party of the project by subcontract shall provide accordingly.


Article 13. No one shall transfer a contract it undertakes. In case any one fails to perform the stipulations of a contract by contracting the whole project it undertakes to others, or contracting to others the whole project it undertakes in the name of subcontract after dismembering it, its acts shall be deemed as acts of transferring a contract.

In case a contract letting party of a project by subcontract, in violation of the provisions of Article 12 of the present Measures, fails to set up a project management organ or appoint any corresponding personnel at the construction sites after subletting the project, or fails to organize and manage the construction activities of the project, such acts shall be considered acts of transferring a contract.


Article 14. No one shall illegally sublet the contract it undertakes. The following acts shall be deemed as illegal subletting of contracts:

(1) A contract letting party of a project by subcontract sublets a specialized project or labor service to a contractor of a project by subcontract who does not have the corresponding qualifications;

(2) The contract letting party of a project by subcontract sublets part of the specialized projects in the project it undertakes to others in the case that there are no stipulations in the general construction contract, and without the approval of the construction entity.


Article 15. No qualification certificate of an enterprise shall be transferred or lent, nor shall any project be undertaken by others in the name of the corresponding enterprise.

Where a contract letting party of a project by subcontract does not subcontract the project it undertakes, and the persons responsible for the project, technology, business accounting of the project, quality control, and safety control of the project management organs established in the construction sites are not the employees of the corresponding entity of the project contractor, that shall be deemed that the enterprise permits others to undertake projects in the name of its enterprise.


Article 16. A contractor of a project by subcontract shall be responsible to the contract letting party of a project by subcontract for the project it undertakes in light of the stipulations of the subcontract. The contract letting party of a contract by subcontract and the contractor of a project by subcontract shall be liable jointly and severally to the construction entities with respect to the projects by subcontract.


Article 17. The contract letting party of a project by subcontract shall be responsible for the safety of the construction sites and make administration on work safety of the contractor of a project by subcontract. The contractor of a specialized project by subcontract shall submit the design of the construction organization of the projects it subcontracted and the plan for construction safety to the contract letting party of a project by subcontract and put them on records there. In case the contract letting party of a specialized project by subcontract finds out hidden trouble of an accident, he shall handle it in time.

The contractor of a project by subcontract shall be responsible to the contract letting party of a project by subcontract for the safety of the construction sites, and shall be subject to the management on safety production of the construction sites by the contract letting party of a project by subcontract.


Article 18. In case any one, in violation of the present Measures, transfers, illegally sublets the contract or permits others to undertake a project in the name of its own enterprise, it shall be punished in accordance with the provisions of the Construction Law of the People's Republic of China, the Bidding and Tendering Law of the People's Republic of China and the Regulation on Quality Control of Construction Projects. Those accepting the transfer of a contract, illegal subletting a contract or undertaking projects in the name of other party shall be imposed upon a fine of 10,000 Yuan to 30,000Yuan.


Article 19. Any one who has not obtained the qualifications of a construction enterprise but undertakes the projects by subcontract shall be punished in accordance with paragraph 3, Article 65 of the Construction Law of the People's Republic of China, and the provisions of paragraphs 1 and 2 of Article 60 of the Regulations on Quality Control of Construction Projects.


Article 20. The present Measures shall come into force as of April 1, 2004. The Implementation Measures for Construction and Installation Projects by General Contract or Subcontract promulgated by the former Ministry of Urban and Rural Construction and Environmental Protection on April 30, 1986, shall be repealed simultaneously.
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