Construction Law of the People's Republic of China (Amended in 2019)

Construction Law of the People's Republic of China (Amended in 2019)
Construction Law of the People's Republic of China (Amended in 2019)

Order of the President of the People's Republic of China No. 29

April 23, 2019

(Adopted at the 28th Session of the Standing Committee of the 8th National People's Congress on November 1, 1997, amanded for the first time in accordance with the Decisions on Amending Construction Law of the People's Republic of China passed at the 20th Session of the Standing Committee of the 11th National People's Congress on April 22, 2011, and amended for the second time in accordance with the Decision of the Standing Committee of the National People's Congress on Amending Eight Laws Including the Construction Law of the People's Republic of China on April 23, 2019 )

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 the supervision and administration over construction activities, maintaining order in the construction market, ensuring the quality and safety of construction projects and promoting the sound development of the construction industry.

Article 2 This Law shall be abided by in engaging in construction activities and in the exercise of supervision and administration over construction activities within the territory of the People's Republic of China.
The construction activities 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 construction activities 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 construction 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 construction activities, 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 construction activities conducted in accordance with law.

Article 6 The competent department of construction administration under the State Council exercises uniform supervision and administration over construction activities 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, small projects under the application threshold as 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 Applications for a building permit shall meet the following requirements:
1. Have completed the formalities for the approval of land use for the said construction project;
2. Have obtained the construction project planning permit, if such permit is required;
3. In the case of necessary demolition and shifting, the progress of demolition and shifting conforming to the requirements of construction;
4. Have determined the construction enterprise;
5. Have the fund arrangement, construction drawings and technical information which meet the requirements for construction; and
6. Have specific measures for ensuring project quality and safety.
The competent department of construction administration shall, within seven 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 obtaining 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 construction activities 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 construction activities engaged in;
3. Having technical equipment for engaging in related construction activities; 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 construction activities 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 construction activities within the scope permitted by their respective human quality grades on obtaining the corresponding grade human quality certificates upon passing human quality examination.

Article 14 Specialized technical personnel engaging in construction activities shall obtain corresponding qualification certificates for operations in accordance with law and engage in construction activities 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 fulfill the obligations agreed in the contract. The party that fails to fulfill 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, in the contract issuance of a construction project, shall not 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.
(Relevant articles: Insights 1)

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.
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