The main reason is that the quality of the construction project does not meet the standards set by the state or the industry.
The above interpretation does not provide for other situations of legal termination of contracts as stipulated in the Contract Law.
What to do after the termination of the construction project contract? According to Article 97 of the Contract Law, after the termination of the contract, if the contract has not been performed, the performance shall be terminated; if the contract has been performed, the parties may, depending on the performance and the nature of the contract, require the original state to be restored, take other remedial measures, and have the right to claim compensation for the loss.
On the other hand, the quality defects of the construction project cannot be remedied through repair, cannot pass the completion acceptance, and the construction project loses its use value.
For both parties, termination of the contract has a great loss, and in general, the parties do not want to terminate the contract.
After the contract is invalid or canceled, the property obtained from the contract shall be returned immediately; If the project cannot be returned or it is unnecessary to return it, it shall be compensated at a discount for the construction project that fails to pass the completion acceptance.
For the construction project that has no use value, it can only be rebuilt, so the contractor has no right to request the payment of project funds.
2、 The Contractor’s right to terminate the contract Article 9 of the judicial interpretation of the construction project stipulates: “If the Employer has one of the following circumstances, which causes the Contractor to be unable to carry out the construction, and fails to perform the corresponding obligations within a reasonable period of the notice, and the Contractor requests to terminate the construction contract of the construction project, it shall be supported: (1) fails to pay the project funds as agreed; (2) the main building materials, building components and equipment provided do not meet the mandatory standards; (3) Failing to perform the obligation of assistance as agreed in the contract.
The above provisions explain the specific application of the legal right of rescission specified in Article 94 of the Contract Law in the construction contract of the construction project, mainly from the perspective that the Employer delays the performance of the main debts agreed in the contract, fails to perform within a reasonable period after being urged to do so, and the Employer enjoys the right of rescission of the contract.
However, the comparative principle of the provisions of the Contract Law on statutory rescission, combined with the issue of rescission of construction contracts, should further clarify the specific circumstances of the exercise of the rescission right, so as to achieve the purpose of limiting the rescission of contracts.
Through the detailed explanation of the above article, we know what we should do to void the construction project contract, but we know that in many cases, the contract does not need to be terminated or annulled within the validity period of contract performance, unless it is caused by force majeure factors such as one party’s breach of contract or production breakdown.
That is, if the repaired construction project passes the completion acceptance, and the Employer requests the Contractor to bear the repair costs, it shall be supported; Article 58 of the Contract Law shall not be supported if the repaired construction project fails to pass the completion acceptance and the contractor requests payment for the project.
According to Article 8 of the judicial interpretation of the construction project, the contract letting party can exercise the right to terminate the contract under four circumstances: (1) the contractor clearly expresses or indicates by behavior that it will not perform the main obligations of the contract; (2) Failing to complete the project within the time limit agreed in the contract, and failing to complete the project within a reasonable time limit urged by the Employer; (3) The completed construction project is unqualified and refuses to be repaired; (4) Illegal subcontracting or illegal subcontracting of contracted construction projects.
Rescission is not the normal state of contract performance, and the exercise of the right to rescind the contract should be limited in accordance with the provisions of the Contract Law.
1、 What to do with the cancellation of the construction project contract 1.
From the perspective of trial practice, the contract letting party is in an advantageous position when contracting projects, and the contractor has fierce competition for contracting projects; However, with the performance of the contract, after the Contractor enters the site for construction, the Employer’s dominant position will weaken.
2、 If the quality of the completed construction project is unqualified, it shall be handled with reference to the provisions of the judicial interpretation on the invalidity of the contract and the unqualified project quality acceptance.
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In accordance with the principle of handling invalid contracts in the Contract Law, the construction project shall be compensated at a discount, so the Employer may require to reduce the project price or the Contractor shall bear the repair costs.
There are generally two cases: one is that although the quality of the construction project is not qualified, the defects can be remedied after repair and the project can pass the completion acceptance.
In this case, the Employer can still accept the construction project and continue to use the construction project after repair.
