What is included in the scope of risk in the construction project construction contract?

Construction project construction contract is the contractor and the contractor on the completion of a specific project construction, equipment installation, equipment commissioning, engineering warranty and other work content, determine the rights and obligations of both parties to the agreement. Construction contract is a kind of construction contract, it and other construction contract is the same as the double service contract, in the conclusion of the principle of voluntary, fair, honesty and credit.

Construction contract risk:

1, construction contract text legitimacy risk

State Administration for Industry and Commerce and the Ministry of Construction to standardize the contract text of the construction market has developed a "construction contract model text" to fully reflect the responsibilities, rights and risks of the contracting parties. However, some contractors in order to avoid their own risk in the signing of the contract, do not use the standard contract text, but use some homemade, non-standardized text for contracting. Through the homemade, generalized, vague text conditions, avoiding the importance of shifting the risk of the project.

2, not in accordance with the law, the risk of bidding and violating the statutory procedures for construction projects

The Ministry of Construction, "Construction Bidding and Tendering Management Measures", "Construction Market Management Regulations" have made corresponding provisions. The contents of bidding and tendering are the basic basis for entering into a construction contract, so bidding and tendering activities should be open, fair and just. If the contractor, the contractor violates these legal procedures for the construction contract is invalid.

The Ministry of Construction, "construction project construction management measures," Article 9 provides that "where the construction project is not reported, shall not apply for bidding and tendering procedures and the issuance of construction permits, design and construction units shall not undertake the design and construction of the project." Therefore, not included in the national and local government capital construction plan, or should be reported to the law without approval of the construction project, due to the construction of the project itself is not legal, i.e., the subject matter of the contract is not legal, the contract signed by the lack of a legal basis for the invalidity of the contract.

3, the main body of the construction contract is not legal

The main body of the contract is qualified, is a prerequisite for the effective establishment of the contract. Qualified subject must have the appropriate civil rights and civil capacity. Therefore, a construction project construction contract is valid, the first look at the contract signing subject is qualified. The main body of the construction project construction contract includes the contractor and the contractor (including the general contractor and subcontractor). The contractor is the property owner or operator of the construction project, and the party responsible for the investment, operation and management of the project. Contractor is accepted by the contractor with the main contracting qualification of the party. The contracting parties or one of the parties do not have the subjective conditions required by the relevant laws of the construction project, will lead to the construction contract is invalid.

4, in violation of the provisions of the relevant subcontracting to enter into a construction contract

Subcontracting refers to the contractor in the contracted works, and then transfer its contracted construction tasks to a third party, the transferor withdraws from the contracting relationship behavior. Some contractors in order to obtain the construction project contracting qualification, at the low price to win the bid, after winning the bid and the project dismembered at a lower price subcontracted to some unqualified construction team, these contractors lack of contracted works of the basic control steps and means of supervision, which in turn, on the progress of the project, the quality of the serious impact on the eventual formation of the qualification of the dispute with the owner and the subcontractor.

5, "black and white contract" caused by the risk

Construction units and bidding units or bidding agency collusion, engage in false bidding, open bidding secretly set 'black and white contract' problem is quite prominent. The so-called black contract, is the construction unit in the project bidding process, in addition to publicly signed contracts, and privately signed contracts with the winning unit, forcing the winning unit to advance capital with capital contracting, suppressing the project payment, etc.. Black contract violates the "bidding and tendering law", "contract law" and "construction law" of the relevant provisions of the law, very easy to cause the quality of construction works hidden, both the interests of the construction party, and ultimately damage the interests of the construction party.

6, the construction contract price valuation type risk

"Interim Measures for Settlement of Construction Project Prices" Article VIII on the construction project price type to make detailed provisions, including: fixed total price, fixed unit price and adjustable price determination. Different construction projects should choose different types of price, and make the corresponding restrictive provisions. For the construction contract of the fixed price agreement contract due to the price of the project during the implementation of the project is not adjusted due to price changes, the contractor bears the risk of the minimum, the contractor bears the risk of the maximum, so the contractor in the conclusion of the construction contract is often taken when this contract mode.

7, the risk of payment

Delinquent payment is the construction market is not cured, from certain government projects to real estate developers, are different degrees of the black card of delinquent payments, damage to the legitimate rights and interests of the construction enterprises and migrant workers, forcing some migrant workers with jumping off buildings, jumping into the river, and other extreme ways to collect hard-earned money; some government projects in the manipulation of corrupt officials in the Project bidding and other links, fraud, enrichment, so that the project payment arrears once intensified. Project payment has become one of the most uncertain risk factors, seriously disturbing and damaging the rights and interests of construction enterprises.

8, the legal risk of advances

Advances in the construction process refers to the contractor in the construction process, does not require the contractor to pay the first payment or payment of part of the project, but the use of their own funds to start construction, to be constructed to a certain stage of the project or the project is completed by the contractor to pay for the advances of the project. The contractor usually adopts the forms of "black and white contract", "quality guarantee", "performance bond or performance bond", "loan contract", etc. to sign the advance contract. " and other forms of advancement contracts or advancement clauses.

During the construction process, the contractor often faces a lot of pressure from material dealers, equipment dealers, construction workers, and loan banks for advancing too much money. At this time, the contractor not only to raise funds for construction, but also to face the risk of breach of contract for their own default on the contractor to bear the risk of liquidated damages, so some contractors may take jerry-built, lower construction standards, or simply subcontracting of the project as a whole to transfer the risk of the use of this practice is more likely to put themselves into a greater risk situation.

9, material price risk

According to China's "Construction Law", the supply of materials for the construction project has the contractor to supply its own or the contractor according to the contract agreed standards for procurement of two ways. Generally speaking, about 70% of the cost of construction project is material cost, therefore, the contractor must take measures to prevent material price risk. However, the ups and downs of material prices are supposed to be normal, but for the contractor, a significant fluctuation in any one of the major materials can have a huge impact.

10, the risk of engineering claims

Claims are the contract and the law gives the right to the person who suffered the loss, for the contractor is a way to protect themselves, safeguard the legitimate rights and interests of the contractor, to avoid losses, increase profits means. Therefore, both parties to the contract should be clearly agreed when signing the contract the rights and obligations of both parties and the terms of the content of the project compensation, to prevent misunderstandings or even disputes due to unclear contractual agreements lead to the risk of claims.