Notice of Ministry of Finance and Ministry of construction on printing and Distributing Interim Measures for settlement of construction project price (CJ [2004] No
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369) relevant departments of the Party Central Committee, ministries and commissions of the State Council, institutions directly under the State Council, relevant people’s organizations, enterprises under central management, finance departments (bureaus) and construction departments (committees and bureaus) of all provinces, autonomous regions, municipalities directly under the central government and cities under separate state planning, and Finance Bureau of Xinjiang production and Construction Corps: In order to maintain the order of construction market and standardize the settlement activities of construction project price, we have formulated the Interim Measures for settlement of construction project price in accordance with relevant national laws and regulations
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It is now printed and distributed to you for implementation
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Annex: Interim Measures for settlement of construction project price Ministry of finance of the people’s Republic of China Interim Measures for settlement of construction project price of the people’s Republic of China on October 20, 2004 chapter I General principles Article 1 in order to strengthen and standardize the settlement of construction project price and maintain the normal order of construction market These measures are formulated in accordance with the construction law of the people’s Republic of China, the bidding law of the people’s Republic of China, the budget law of the people’s Republic of China, the government procurement law of the people’s Republic of China, the regulations for the implementation of the budget law of the people’s Republic of China and other relevant laws and administrative laws
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Article 2 These measures are applicable to the settlement of construction project price within the territory of the people’s Republic of China
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Where there are other provisions in state laws and regulations, such provisions shall prevail
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Article 3 the construction project price settlement (hereinafter referred to as “project price settlement”) as mentioned in these Measures refers to the activities of making an agreement on the contract price of the construction project and settling the project advance payment, project progress payment and project completion price according to the contract agreement
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Article 4 the financial department of the State Council, the financial department of the local governments at all levels, the competent construction administrative department of the State Council and the competent construction administrative department of the local governments at all levels shall be responsible for the supervision and administration of the settlement of project prices within the scope of their respective duties
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Article 5 the settlement of project price shall follow the principles of legality, equality and good faith, and conform to the relevant laws, regulations and policies of the state
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Chapter II agreement and adjustment of project contract price article 6 the contract price of a project subject to tender shall be stipulated in a written contract between the employer and the contractor (hereinafter referred to as “the employer and the contractor”) in accordance with the tender documents and the bid documents of the successful bidder within the specified time
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The contract price of the non bidding project shall be agreed by the employer and the contractor in the contract according to the approved project budget
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After the contract price is agreed in the contract, neither party shall change it without authorization
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Article 7 the employer and the Contractor shall stipulate in the contract terms the following matters concerning the settlement of the project price: (1) the amount, time limit and deduction method of the advance payment for the project; (2) the payment method, amount and time limit of the progress payment for the project; (3) the adjustment method and claim method of the project price in case of any change in the construction of the project Time limit requirements and payment method; (4) settlement method of project price dispute; (5) agreed scope and range of risk and adjustment method beyond the agreed scope and range; (6) settlement and payment method, amount and time limit of project completion price; (7) amount and withholding method of project quality guarantee (warranty) fund (8) safety measures and accidental injury insurance; (9) rewards and punishments for the advance or delay of the construction period; (10) guarantees related to the performance of the contract and the payment of the price
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Article 8 when signing the contract, the developer and the contractor may choose one of the following ways to agree on the project price: (1) fixed total price
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Fixed price contract can be used for projects with short construction period and low total contract price
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(2) fixed unit price
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Both parties agree on the risk scope and risk cost calculation method of the comprehensive unit price in the contract, and the comprehensive unit price will not be adjusted within the agreed risk scope
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The adjustment method of comprehensive unit price beyond the risk scope shall be stipulated in the contract
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(3) adjustable price
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The adjustable price includes the adjustable comprehensive unit price and measure fee
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Both parties shall agree on the adjustment method of the comprehensive unit price and measure fee in the contract
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The adjustment factors include: 1
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The changes of laws, administrative regulations and relevant national policies affect the contract price; 2
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The price adjustment of the project cost management organization; 3
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The approved design change; 4
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The employer’s change is approved 5
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Other factors agreed by both parties
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Article 9 the Contractor shall, within 14 days after the occurrence of the adjustment specified in the contract, notify the employer in writing of the reason for the adjustment and the amount of the adjustment
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After the employer confirms the amount of the adjustment, it shall be regarded as the additional contract price and shall be paid in the same period as the progress payment of the project
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If the employer does not confirm or put forward modification opinions within 14 days after receiving the notice from the contractor, it shall be deemed that it has agreed to the adjustment
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If the Contractor fails to notify the employer within the specified time or submit an adjustment report within the specified time after the adjustment of the contract price specified in the contract occurs, the employer may decide whether to adjust and adjust the amount according to the relevant information, and notify the contractor in writing
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Article 10 price adjustment for engineering design change (1) in case of engineering change during construction, the Contractor shall carry out the change construction in accordance with the change design documents approved by the employer
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In case of major changes in government invested projects, the construction can only be carried out after approval according to the capital construction procedures
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(two) within 14 days after the change of the engineering design is determined, the design change involves the adjustment of the project price, and the Contractor shall submit it to the employer and adjust the contract price after the employer’s examination and approval
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The contract price shall be changed according to the following methods: 1
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The price applicable to the changed project in the contract shall be changed according to the existing price in the contract; 2
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If there is only the price similar to the changed project in the contract, the contract price can be changed according to the similar price; 3
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If there is no price applicable to or similar to the changed project in the contract, the contractor or the employer shall propose the appropriate price When the price is changed, it will be implemented after the confirmation of the other party
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If both parties fail to reach an agreement, both parties may submit to the local project cost management organization for consultation or handle the dispute or dispute resolution procedures as agreed in the contract
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(3) within 14 days after the engineering design change is determined, if the Contractor does not submit a report on the change of project price, the employer may decide whether to adjust the contract price and the specific amount of adjustment according to the information available
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The time limit for the report and confirmation of major project change involving project price shall be determined by both parties through negotiation
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The party receiving the change project price report shall confirm or put forward consultation opinions within 14 days from the date of receiving the change project price report
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If the other party fails to confirm or put forward consultation opinions within 14 days from the date of delivery of the change project price report, it shall be deemed that the change project price report has been confirmed
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The increased (decreased) project change price is recognized as the additional (decreased) contract price and the project progress payment shall be paid at the same period
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Chapter III settlement of project price article 11 settlement of project price shall be handled in accordance with the contract
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In case of no agreement or unclear agreement in the contract, both parties shall negotiate with the documents in accordance with the following provisions: (1) relevant laws, regulations and rules of the state; (2) construction administrative department of the State Council, province, autonomous region, municipality directly under the central government or relevant ministry (3) the contract, supplementary agreement, change visa and on-site visa of the construction project, as well as other valid documents approved by the employer and the contractor; (4) other materials that can be used for reference.
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