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Article 1. [Purpose and Basis] These Measures are formulated in accordance with relevant laws and administrative regulations of the State for the purpose of promoting the healthy development of construction engineering project management in China, regulating the construction engineering project management activities, and continuously improving the investment benefits from construction projects and the art of construction engineering project management. Article 2. [Scope of Application] Whoever carries out engineering project management activities inside the People's Republic of China shall abide by these Measures. "Construction engineering project management" mentioned in these Measures shall mean the specialized management and services provided by an enterprise engaging in engineering project management (hereinafter referred to project management enterprise) for the whole process of project construction or by stages upon entrustment by the construction engineering project owner. Article 3. [Enterprise Eligibilities] A project management enterprise shall possess one or more eligibilities in respect of project survey, design, construction undertaking, supervision, construction cost consulting, agency in bid invitation, etc. An enterprise engaging in project survey, design, construction undertaking, supervision, construction cost consulting, agency in bid invitation, etc. may apply for a new eligibility other than its own existing eligibilities. When applying for the new eligibility, the enterprise's original eligibility status such as project performance, technical staff, management staff, registered capital and office site, etc. may be combined together for assessment. Article 4. [Practicing Qualification] A professional engaging in engineering project management shall have one or more practicing qualifications as an urban planner, architect, engineer, builder, supervision engineers, and/or construction cost engineer, etc. A professional who has obtained the practicing qualification as an urban planner, architect, engineer, builder, supervision engineer and/or construction cost engineer, etc. may apply to be registered and practice in any enterprise engaging in project survey, design, construction undertaking, supervision, construction cost consulting or agency in bid invitation, etc. A professional who has obtained more than one of the above mentioned practicing qualifications may be separately registered and practice in the same enterprise. Article 5. [Scope of Services] A project management enterprise shall improve its organizational structure, set up a project management system, augment its project management professionals, and shall, in accordance with relevant presently applicable provisions on the administration of enterprise eligibilities, carry out the engineering project management business within the scope permitted by its eligibility grade. Article 6. [Contents of Services] The scope of engineering project management business covers the following: (1) Assisting the project owner in making early stage plans, economic analysis, special evaluation of the project, and in determining the early stage investments; (2) Assisting the project owner in going through procedures relating to land requisition, permit for planning, etc.; (3) Assisting the project owner in proposing requirements on project design, arranging the program on apprising project design, organizing invitations to bid for project survey and design, concluding the survey and design contract and supervising the implementation thereof, organizing the designing entity to optimize the project design, selecting the technical and economic proposal through comparison, as well as in controlling investments; (4) Assisting the project owner in organizing project supervision, construction undertaking, and invitation to bid for supply of equipment and materials; (5) Assisting the project owner in concluding contracts with the enterprise undertaking general contract for the construction engineering project or the construction undertaking enterprise, as well as with the enterprise supplying building materials, equipment, components and parts, and other relevant enterprises, and in supervising the implementation of the contracts concluded; (6) Assisting the project owner in proposing the plan on using funds for implementation of the project, in settling and finalizing accounts upon completion of the project, in dealing with claims arising out of the project, in organizing inspection upon completion, and in handing over the completion archives to the project owner; (7) Conducting the trial operations in production and the management within the project maintenance warranty period, and organizing post-project evaluation; and (8) Other work stipulated in the project management contract. Article 7. [Method of Entrustment] A construction engineering project owner may select a project management enterprise by means of bid invitation or entrustment, etc., and shall conclude with the selected project management enterprise a contract on entrustment of project management in written form. The contract shall clarify the period for implementation, the management scope, the rights, obligations and responsibilities of both parties, the project management commission and the method of payment thereof, the methods of settling contractual disputes, and so on. When an enterprise engaging in project survey, design or supervision, etc. simultaneously undertakes management of the same engineering project and the project survey, design or supervision business within its eligibility scope, the tasks involved shall, if the law so requires, be determined by means of bid invitation. A construction undertaking enterprise shall not undertake the management and the contract business simultaneously for the same project. Article 8. [Consortium Bidding]ĦĦTwo or more project management enterprises may form a consortium to tender jointly for bid in the name of any one bidder. If the consortium wins the bid, all parties to the consortium shall jointly conclude with the project owner a contract on entrustment of project management, and bear joint liabilities for the implementation of the said contract. All parties to the consortium shall conclude a consortium agreement, clarifying each party's rights, obligations and responsibilities, and determining one party as the consortium's principal responsible party, who shall appoint the project manager. Article 9. [Cooperative Management] A project management enterprise may, upon consent of the project owner, cooperate with other project management enterprises, and conclude a cooperation agreement with the cooperator, clarifying the rights, obligations and responsibilities of each party. All parties to the cooperation shall bear joint liabilities for the implementation of the contract on entrustment of project management. Article 10. [Management Institution] A project management enterprise shall, pursuant to the stipulations in the contract on entrustment of project management, appoint a professional with adequate practicing qualification to hold the post of project manager, set up a project management institution, build up a management system suitable for the management, be furnished with professional technical and management staff who meet the needs in engineering project management, formulate post duties of the project managers in different specialties, and implement the contract on entrustment of the project management. The project manager's responsibility system shall be applied to engineering project management. A project manager shall not simultaneously engage in project management in two or more construction engineering projects. Article 11. [Service Charges] The engineering project management service charges shall be stipulated between the project owner and the project management enterprise in the contract on entrustment of project management on the basis of the scale, scope, contents, depth, and extent of complexity, etc. of the entrusted construction engineering project. The engineering project management service charges shall be paid from budgetary estimate of the project. Article 12. [Practicing Principles] A project management enterprise and its employees shall, when implementing the contract on entrustment of project management, abide by the presently applicable laws and regulations of the State, and the project construction procedures, as well as execute the compulsory standards on project construction, obey occupational ethics, carry out the project management fairly, scientifically and honestly. Article 13. [Awards] With respect to the rational suggestions proposed and implemented by a project management enterprise, a project owner shall grant awards to the project management enterprise according to a certain proportion of the amount of saved investments. The proportion of awards shall be stipulated between the project owner and the project management enterprise in the contract. Article 14. [Prohibited Acts] A project management enterprise shall not commit any of the following acts: (1) Having subordination relationship or other interest relationship with the enterprise undertaking construction of the entrusted construction engineering project, or with the enterprise supplying building materials, components and parts, or equipment; (2) Simultaneously undertaking engineering construction of an entrusted construction engineering project; (3) Transferring all the business it has undertaken to others, or dividing such business into parts and then transferring them to others separately; (4) Permitting in any form any other entity or individual to undertake the engineering project management in the name of this enterprise; (5) Colluding with relevant entities to damage the project owner's benefits or worsen the quality of the project. Article 15. [Prohibited Acts] A project manager shall not commit any of the following acts: (1) A professional having obtained one or more practicing qualifications shall not be registered and practice simultaneously in two or more enterprises. (2) Accepting bribes, asking for discounts or other benefits; (3) Explicitly or impliedly urging the relevant entity to violate laws and regulations, or compulsory standards on project construction, and worsen the quality of the project. Article 16. [Supervision and Administration] The relevant professional institution under the State Council, and the competent governmental administrative departments of construction at the provincial level shall strengthen supervision and administration of the market acts of the project management enterprises and their staff, set up a credit appraisal system for the project management enterprises and their staff, and penalize the ill acts of violating laws or rules, etc. Article 17. [Industry Guidance] All industrial associations shall actively hold trainings on engineering project management, cultivate professional talents on engineering project management, set forth standards and rules on engineering project management, guide and regulate construction engineering project management activities, strengthen self-discipline of the industry, and promote the healthy development of the construction engineering project management. Article 18. The power to interpret these Measures shall remain with the Ministry of Construction. Article 19. These Measures shall come into force on December 1, 2004. |
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