Home China Laws 2003 CONSTRUCTION LAW

CONSTRUCTION LAW

Category  INDUSTRY Organ of Promulgation  The Standing Committee of the National People’s Congress Status of Effect  In Force
Date of Promulgation  1997-11-01 Effective Date  1998-03-01  


Construction Law of the People’s Republic of China

Contents
Chapter I  General Provisions
Chapter II  Building Permit
Chapter III  Construction Project Contract Issuance and Contracting
Chapter IV  Construction Project Supervision and Control
Chapter V  Construction Production Safety Management
Chapter VI  Construction Project Quality Control
Chapter VII  Legal Liability
Chapter VIII  Supplementary Provisions

(Adopted at the 28th Meeting of the Standing Committee of the Eighth

National People’s Congress on November 1, 1997 and promulgated by Order
No. 91 of the President of the People’s Republic of China on November 1,
1997)
Contents

    Chapter I  General Provisions

    Chapter II  Building Permit

     Section 1  Building Permit for Construction Project

     Section 2  Qualifications for Operations

    Chapter III  Construction Project Contract Issuance and Contracting

     Section 1  General Rules

     Section 2  Contract Issuance

     Section 3  Contracting

    Chapter IV  Construction Project Supervision and Control

    Chapter V  Construction Production Safety Management

    Chapter VI  Construction Project Quality Control

    Chapter VII  Legal Liability

    Chapter VIII  Supplementary Provisions
Chapter I  General Provisions

    Article 1  This Law is enacted with a view to enhancing supervision and
administration over building operations, maintaining order in the construction
market, ensuring the quality and safety of construction projects and promoting
the sound development of the building industry.

    Article 2  This Law shall be adhered to in engaging in building operations
and in the exercise of supervision and administration over building operations
within the territory of the People’s Republic of China.

    The building operations referred to in this Law mean construction of all
types of housing and the construction of their ancillary facilities as well
as their matching installation operations of wiring, piping and equipment.

    Article 3  The building operations shall ensure the quality and safety
of construction projects and ensure that they are in conformity with the
state safety standards for construction projects.

    Article 4  The State supports the development of the building industry,
supports scientific and technological research in construction to improve
the levels in the design of housing construction, encourages energy economy
and environmental protection, encourages adoption of advanced technologies,
advanced equipment, advanced techniques and new building materials and
modern mode of management.

    Article 5  In engaging in building operations, laws and regulations shall
be adhered to, and public interest of society and the legitimate rights and
interests of others shall not be infringed upon.

    No unit or individual shall hinder or obstruct the building operations
conducted in accordance with law.

    Article 6  The competent department of construction administration under
the State Council exercises uniform supervision and administration over
building operations nationwide.
Chapter II  Building Permit

    Section 1  Building Permit for Construction Project

    Article 7  A construction unit shall, prior to the start of construction
of a construction project, apply to the competent department of construction
administration of the people’s government at or above the county level of the
place wherein the project is to be located for a building permit pursuant to
the relevant state provisions; however, the below-ceiling small projects
determined by the competent department of construction administration under
the State Council are exceptions.

    A construction project the report for the start of construction of which
has been approved pursuant to the terms of reference and procedures prescribed
by the State Council shall no longer obtain a building permit.

    Article 8  Application for a building permit shall meet the following
terms:

    (1) having completed the formalities for the approval of land use for the
said construction project;

    (2) having obtained the planning permit in the case of the construction
project in an urban planning zone;

    (3) in the case of necessity of demolition and shifting, the pace of
demolition and shifting conforming to the requirements of construction;

    (4) having determined the construction enterprise;

    (5) having construction drawings and technical information which meet the
requirements for construction;

    (6) having specific measures for ensuring project quality and safety;

    (7) the construction funds having been made available; and

    (8) other terms prescribed by laws and administrative regulations.

    The competent department of construction administration shall, within
15 days from the date of receipt of an application, issue a building permit
for the application which conforms to the terms.

    Article 9  A construction unit shall start the construction within three
months from the date of acquisition of the building permit. For inability to
start the construction in time due to unforeseen reasons, an application for
extension shall be filed with the permit-issuing organ; the extension shall
be limited to two times, and each time shall not exceed three months. The
building permit shall be automatically annulled in the case of a construction
project which neither gets started nor applies for extension, or which has
exceeded the time limit for extension.

    Article 10  For suspension of construction of a construction project
under construction due to unforeseen reasons, the construction unit shall,
within one month from the date of suspension of the construction, submit
a report to the permit-issuing organ and carry out maintenance and
administration of the construction project in accordance with rules.

    A report shall be submitted to the permit-issuing organ when the
construction project resumes construction; prior to resumption of construction
of a construction project whose construction has been suspended for a year,
the construction unit shall submit a report to the permit-issuing organ for
the verification and examination of the building permit.

    Article 11  For inability to start construction in time or suspension of
construction due to unforeseen reasons, a construction project the report for
the start of construction of which has been approved pursuant to the relevant
provisions of the State Council shall submit a report to the approval
authority in time on the situation. For inability to start construction in
time exceeding six months due to unforeseen reasons, formalities for the
approval of the report for the start of construction shall be completed again.

    Section 2  Qualifications for Operations

    Article 12  Building construction enterprises, survey units, design
units and project supervision units engaging in building operations shall
have the following qualifications:

    (1) having a registered capital conforming to state provisions;

    (2) having specialized technical personnel with qualifications for legal
operations commensurate with the building operations engaged in;

    (3) having technical equipment for engaging in related building
operations; and

    (4) other qualifications prescribed by laws and administrative regulations.

    Article 13  Building construction enterprises, survey units, design
units and project supervision units engaging in building operations shall be
classified into different grades of human quality in accordance with such
human quality qualifications as the registered capital, specialized technical
personnel, technical equipment in their possession and achievements in
construction projects completed, and may engage in building operations within
the scope permitted by their respective human quality grades on acquisition of
the corresponding grade human quality certificates upon passing human quality
examination.

    Article 14  Specialized technical personnel engaging in building
operations shall obtain corresponding qualification certificates for
operations in accordance with law and engage in building operations
within the scope permitted by the qualification certificates for operations.
Chapter III  Construction Project Contract Issuance and Contracting

    Section 1  General Rules

    Article 15  The contract issuing unit and contracting unit of a
construction project shall conclude a contract in writing according to law
expressly defining the rights and obligations of the parties.

    The contract issuing unit and contracting unit shall comprehensively
fulfil the obligations agreed in the contract. The party that fails to
fulfil the obligations pursuant to the agreement in the contract shall bear
the liability for the breach of the agreement according to law.

    Article 16  Invitation to tender and bidding of the tender of contract
issuance and contracting of a construction project shall follow the principle
of openness, fairness and equal competition and the contracting unit shall
be selected on merit.

    For invitation to tender and bidding of the tender of construction
projects not prescribed by this Law, provisions of laws relating to invitation
to tender and bidding of the tender shall apply.

    Article 17  A contract issuing unit and its staff members shall not,
in the contract issuance of a construction project, accept bribes and
commissions or seek other benefits.

    A contracting unit and its staff members shall not employ such unfair
means as offering bribes, commissions or giving other benefits to the
contract issuing unit and its staff members to contract the project.

    Article 18  The cost of a construction project shall, pursuant to
relevant state provisions, be agreed upon by the contract issuing unit
and the contracting unit in the contract. For a construction project with
invitation to open tender, the agreement on its cost shall abide by the
provisions of laws on invitation to tender and bidding.

    The contract issuing unit shall, pursuant to the agreement in the
contract, make allocations for the project in time.

    Section 2  Contract Issuance

    Article 19  Construction projects shall practise contract issuance by
invitation to tender in accordance with law; those construction projects
not suitable for contract issuance by invitation to tender may adopt direct
contract issuance.

    Article 20  For a construction project for invitation to open tender,
the contract issuing unit shall, pursuant to the legal procedures and mode,
publish a tender notice providing tender documents carrying such contents as
major technical requirements of the project open to tender, main articles of
the contract, standards and methods of bid evaluation as well as procedures of
bid opening, bid evaluation and bid finalization.

    Bid opening shall be held in public at the time and place prescribed in
the tender document. Evaluation and comparison of bid proposals shall be
carried out pursuant to the standards and procedures for bid evaluation
prescribed in the tender document after the bids are opened, and selection
of the winning bidder made from among bidders with corresponding human quality
qualifications on merit.

    Article 21  Bid opening, bid evaluation and bid selection of the
construction project open to tender shall be organized and carried out
by the construction unit according to law and subject to the supervision
of the competent administrative departments concerned.

    Article 22  For a construction project following contract issuance
through tender, the contract issuing unit shall award the contract of the
construction project to the contracting unit winning the bid in accordance
with law. For a construction project following direct contract issuance,
the contract issuing unit shall award the contract of the construction
project to the contracting unit with corresponding human quality
qualifications.

    Article 23  The Government and its subordinate departments shall not
abuse their administrative powers in restricting contract issuing units
in awarding contracts of construction projects following contract issuance
through tenders to designated contracting units.

    Article 24  General contracting of construction projects shall be
encouraged and dismemberment of contract issuance of construction projects
shall be prohibited.

    The contract issuing unit of a construction project may award in total
the contract of surveying, design, construction and equipment procurement
of the construction project to a general contracting unit of the project.
It may also award one item or several items of surveying, design, construction
and equipment procurement of the construction project to a general contracting
unit of the project; however, it shall not dismember a construction project
which should be completed by one single contracting unit into several parts
for awarding contracts to several contracting units.

    Article 25  For building materials, building structural pieces and parts
and equipment to be procured by the contracting unit of the project pursuant
to the agreement in the contract, the contract issuing unit shall not
designate the contracting unit in the procurement of building materials,
building structural pieces and parts and equipment for the project, nor
shall it designate the manufacturers and suppliers of the same.

    Section 3  Contracting

    Article 26  The contracting units of construction projects shall contract
projects with human quality certificates obtained in accordance with law and
within the business scope permitted by their human quality grades.

    Building construction enterprises shall be prohibited to contract
projects beyond the business scope permitted by their respective human quality
grades or in the name of other building construction enterprises in any form.
Building construction enterprises shall be prohibited to permit in any form
other units or individuals in the use of their human quality certificates,
business licences to contract projects in the name of their respective
enterprises.

    Article 27  Large construction projects or construction projects with
complex structures may be jointly contracted by more than two contracting
units. Parties to the joint contract shall bear joint responsibilities in
the implementation of the contract.

    In the case of a joint contract by more than two units with different
human quality grades, the project shall be contracted in accordance with
the business scope granted to the unit with lower human quality grade.

    Article 28  Subcontracting to others of the entire construction project
contracted by the contracting unit shall be prohibited. Subcontracting to
others in the name of subcontracting after dismemberment of the entire
construction project contracted by the contracting unit shall be prohibited.

    Article 29  The general contracting unit of a construction project may
award contracts of parts of the contracted project to subcontracting units
with corresponding human quality qualifications; however, except for the
subcontracting agreed upon in the general contracting contract,
acknowledgement of the construction unit shall be obtained. In the case of
general contracting of construction, construction of the main structure of the
construction project must be completed by the general contracting unit itself.

    The general contracting unit of a construction project shall, pursuant to
the agreement in the general contracting contract, be responsible to the
construction unit; subcontracting units shall, pursuant to the agreement in
the subcontracts, be responsible to the general contractor. The general
contracting unit and subcontracting units shall bear joint responsibility
to the construction unit in respect of the subcontracted projects.

    The general contracting unit is prohibited to subcontract the project
to units with no corresponding human quality qualifications. The
subcontracting unit shall be prohibited to re-subcontract the project it
has contracted.
Chapter IV  Construction Project Supervision and Control

    Article 30  The State practises the construction project supervision and
control system.

    The State Council may determine the scope of mandatory supervision and
control of construction projects.

    Article 31  The construction unit of a construction project under
supervision and control shall entrust the supervision and control with
an engineering supervision and control unit with corresponding human quality
qualifications. The construction unit and its entrusted engineering
supervision and control unit shall conclude a contract for entrustment of
supervision and control in writing.

    Article 32  The construction project supervisor-controller shall, pursuant
to the laws, administrative regulations as well as relevant technical
standards, design documents and the construction project contractual contract,
exercise supervision over the contracting unit in construction quality,
construction schedule and use of construction funds on behalf of the
construction unit.

    Engineering supervisors have the power to ask the building construction
enterprise to make corrections when they hold that construction of the
project does not conform to engineering design requirements, construction
technical standards and agreement in the contract.

    Engineering supervisors shall, upon discovery of engineering design not
in conformity with construction project quality standards or quality
requirements agreed in the contract, report to the construction unit to
ask the design unit to make corrections.

    Article 33  The construction unit shall, prior to the exercise of
supervision and control over the construction project, notify the building
construction enterprise to be put under supervision and control in writing
of the entrusted engineering supervision and control unit, the contents of
supervision and control and terms of reference in supervision and control.

    Article 34  An engineering supervision and control unit shall undertake
engineering supervision and control business within the scope of supervision
and control permitted for its human quality grade.

    The engineering supervision and control unit shall, in accordance with
the entrustment of the construction unit, conduct the missions of supervision
and control objectively and fairly.

    The engineering supervision and control unit and the contracting unit
of the project under supervision and control as well as supply units of
building materials, building structural pieces and parts and equipment shall
not have subordinate relationship or other relations of interest.

    The engineering supervision and control unit shall not transfer
its engineering supervision and control business.

    Article 35  An engineering supervision and control unit shall bear
corresponding liability of compensation in the case of failure to fulfil
the obligations of supervision and control agreed in the contract of
entrustment of supervision and control, not carrying out inspection or
carrying out inspection not in accordance with the provisions over items
which should have been put under supervision and inspection, thus causing
losses to the construction unit.

    An engineering supervision and control unit shall bear joint liability of
compensation with the contracting unit for collusion in gaining illegal
interests for the contracting unit thus causing losses to the construction
unit.
Chapter V  Construction Production Safety Management

    Article 36  Construction project production safety management must adhere
to the policy of safety first and prevention first, establish and perfect the
responsibility system of production safety and the system of prevention and
treatment by the masses.

    Article 37  Construction project design shall conform to the construction
safety procedures and technical standards formulated in accordance with
state provisions to ensure the safety performance of the project.

    Article 38  A building construction enterprise shall work out
corresponding safety technical measures according to the characteristics of
the construction project in the compilation of design for construction
organization; for speciality-intensive items of the project, design for
special-purpose safety construction organization shall be compiled and
safety technical measures taken.

    Article 39  A building construction enterprise shall take such measures
as the maintenance of safety, precautions against danger and fire prevention
at the construction site; where there are the required conditions,
construction site closed management shall be followed.

    A building construction enterprise shall take safety protection measures
in the case of the construction site causing possible damage to its adjoining
buildings, structures or special operational environment.

    Article 40  The construction unit shall provide the building construction
enterprise with the relevant information on underground piping and wiring
of the construction site, and the building construction enterprise shall
take measures for their protection.

    Article 41  The building construction enterprise shall abide by the
provisions of the laws and regulations relating to environmental protection
and safety in production and take control and disposal measures at the
construction site of various kinds of dust, waste gas, waste water, solid
waste as well as noise, vibration polluting and damaging the environment.

    Article 42  A construction unit shall, pursuant to the relevant state
provisions, go through the formalities of application for approval in case
of any of the following circumstances:

    (1) need of temporarily occupying sites beyond the approved planned
scope;

    (2) possibility of damaging such public facilities as roads, pipes and
cables, electricity, postal service and telecommunications;

    (3) need of temporary suspension of water supply, electricity supply and
suspension of road traffic;

    (4) need to conduct explosion operations; and

    (5) other circumstances requiring going through the formalities of
application for approval as prescribed by laws and regulations.

    Article 43  The competent department of construction administration
shall be responsible for the administration of construction safety in
production and subject to the guidance and supervision of the competent
department of labour in construction safety in production in accordance
with law.

    Article 44  A building construction enterprise must, in accordance with
law, strengthen construction safety production management, implement the
safety production responsibility system and take effective measures to prevent
casualties and other accidents in safety production from taking place.

    The legal representative of a building construction enterprise shall be
responsible for the safety in production of the enterprise.

    Article 45  The building construction enterprise shall be responsible
for the construction site safety. The general contracting unit shall be
responsible for the construction site safety of the project under general
contract for construction. Subcontracting units shall be responsible to
the general contracting unit and subordinate themselves to the management
of the general contracting unit for construction site safety in production.

    Article 46  Building construction enterprises shall establish and
perfect the educational and training system of safety in labour and
production, step up the education and training of workers and staff members in
safety in production; no personnel without undergoing education and training
in safety in production shall take up posts in operations.

    Article 47  Building construction enterprises and their personnel shall,
in the process of construction, abide by the laws and regulations relating to
safety in production and safety regulations and procedures of the building
industry, and shall not give command in contravention of regulations or
operate in contravention of regulations. Operators have the right to put
forth suggestions for improvement with regard to the operational procedures
and operational conditions adversely affecting physical health and have the
right to obtain protective gear necessary for safety in production. Operators
have the right to make criticism, report the case of and file charges against
acts endangering lives, safety and physical health.

    Article 48  Building construction enterprises must insure workers and
staff members engaging in dangerous operations against accidental injuries
and pay the insurance premium.

    Article 49  In restoration or rehabilitation project involving the main
body of the building and changes in the weight-bearing structure, the
construction unit shall, prior to the construction, entrust the original
design unit or a design unit with corresponding human quality qualifications
to put forth a design proposal; where there is no design proposal, no
construction shall be undertaken.

    Article 50  Dismantling of houses shall be undertaken by building
construction units with conditions to ensure safety and the person-in-charge
of the building construction units shall be responsible for the safety.

    Article 51  In the event of an accident in the process of construction,
the building construction enterprise shall take emergency measures to reduce
casualties of personnel and losses caused by the accident, and submit a report
in time to the departments concerned pursuant to relevant state provisions.
Chapter VI  Construction Project Quality Control

    Article 52  The quality of survey, design and construction of a
construction project must conform to the requirements of state safety
standards relating to construction projects. Specific control measures
shall be formulated by the State Council.

    State standards relating to safety in construction projects shall be
revised in time when they are unable to adapt to the requirements of ensuring
safety in building.

    Article 53  The State practises the quality system authentication system
with respect to units engaging in building operations. Units engaging in
building operations may, in accordance with the princ