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Hubei Province, Construction Cost Management

Original Language Title: 湖北省建设工程造价管理办法

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(Adopted by Order No. 311 of 16 November 2007 of the People's Government of the Northern Province of Lake Great Lakes, effective 1 January 2008)

Article I, in order to strengthen the construction of engineering price management, regulates the construction of engineering prices, determines and effectively controls the construction of works, preserves the legitimate rights and interests of all parties in the construction of the works, and develops this approach in line with the provisions of relevant laws, regulations, such as the People's Republic of China Building Act, the People's Republic of China tenders bill, the People's Republic of China contract law.
Article 2
This approach refers to the construction of engineering prices that are required for construction projects to obtain and deliver all of the costs required for their use. The main include engineering fees, other construction costs, construction costs, interest in bank loans for taxes and construction periods, and State provisions should be taken into account for other costs of engineering construction.
Article 3
Departments such as provincial transport, water and electricity are responsible for the management of industrial engineering prices. The various professional engineering pricing management agencies are able to perform specific work on the management of the industrial works in accordance with the relevant professional engineering price management provisions and the relevant thresholds.
Article IV. The provincial engineering price management shall develop regulatory systems and price rules for the construction of construction works based on national regulations and standards, and provide the basis for the construction of construction works.
The construction price management at all levels should collect and publish, in a timely manner, information on the average market prices and construction prices for manuals, materials, construction machines, and price change trends, and provide price references for various construction works.
Article 5 is required by law to carry out the construction of tenders, which must be based on the existing construction of engineering prices at the national and provincial levels. It is prohibited that construction works are involved in the mutual collusion of parties and that they take advantage of the illicit interest.
The cost of construction works is based mainly on the engineering investment estimates indicators, the length of work, the budget estimates, the budget line (Uniting the base price tables and the valuation schedule), the costs, the amount of the construction machinery's fees and the replenishment, the other price base provided by the State and the province.
Article 6. Investments in construction projects shall be estimated to be based on the cost of the construction period, interest rates, exchange rate changes etc.
The proposed budget for construction engineering design should be prepared in accordance with the principles of the proposed budget and the cost of the project, under the control of the investment estimates. The approved design estimates are used as the main basis for investment and price control, and no breakthrough is permitted without approval by the project approval.
Article 8. The construction work map budget shall be prepared in accordance with the certified construction map, the construction organization design programme, the price base and the related provisions, within the framework of the approved design estimates.
Article 9. Modalities for construction of engineering value may be used either by the method of calculating the value of the project or by the quotation method, and are specified in the solicitation documents in accordance with the relevant laws, regulations. However, the two price options cannot be combined in the same project.
Article 10 Producers and contractors shall enter into a written construction contract in accordance with the law. The construction of tenders must be carried out in accordance with the law and the contract price and intermediate tenders should be consistent. After the agreement in the contract, any party may not be able to change itself and shall not enter into other agreements that are inconsistent with the substance of the contract outside the contract.
Article 11. Construction of construction contracts shall be agreed upon in accordance with the relevant provisions of the State and the province:
(i) The contract price;
(ii) Reimbursement of works, the amount of payments of progress made, the time frame and modalities for payment;
(iii) The design of changes, incomplete lists of works, omissions, erroneous determinations of calculations and adjustments in engineering prices, the manner of claims, time-bound requirements and the manner of payment of the corresponding price;
(iv) The amount of the work quality assurance (insurance), the manner of pre-emptation and the return time frame;
(v) Medalism for the duration of work and the period of work or the period of work;
(vi) Scope of risks such as equipment, material price change, range and above the agreed scope, adjustments in the contract price of the work at the time of the scale;
(vii) Means of payment for the completion of the settlement and settlement of the post-recorded works and liability for default;
(viii) Security measures, civilization construction and accidental injury insurance costs;
(ix) The manner in which security matters relating to the implementation of contracts, payment of prices, and the settlement of the price dispute;
(x) The parties were of the view that other construction matters should be agreed.
Article 12. The construction of tenders must be carried out in accordance with the law, and the licensor and the contractor, within 7 days of the signing of the construction contract, the contractor submits the copies of the contract to the engineering establishment management body at the district level above. At the time of the submission, information such as solicitation documents, letters of credit, commercial markers and electronic data on bid prices should be submitted simultaneously.
Supplementary contracts with respect to the adjustment of engineering prices signed by both the lender and the contractor during the construction process, and the supplementary agreement should be submitted in a timely manner to the PAE.
When the adjustment of the contract price under Article 13 arises, the contractor shall communicate the reasons for the adjustment within 14 days, the amount in writing to the lender, after the adjustment is confirmed by the author as an additional contract price, subject to the contract agreement. The author was not confirmed within 14 days of receipt of the notice of the contractor and considered that the adjustment had been agreed; if the contractor had not made a adjustment report or notice of the lender within the prescribed time period, the lender could decide on the basis of the relevant information, the amount of adjustments and adjustments and notify the contractor in writing.
The cost-living visa involved in the adjustments to the construction contract shall be a written material signed by the contractor, the representatives of the lender and the treasurer or the contractor.
Article 14.
The construction of tenders must be carried out in accordance with the law and the completion of the work settlement should be based on the construction of the construction works contract, which is based on the contract agreement contract price.
After the completion of the work, the contractor shall submit to the licensor a complete completion settlement document, in addition to the contractual agreement between the author and the contractor.
Article 16, after receipt of the contractor's submission of the completion of the work settlement document, provides for a direct review of the conditions, or a review of the construction consulting firm with the corresponding qualifications and a written review within the specified period. A review opinion was not submitted late as endorsed.
The construction consulting firm shall conduct the completion of the work settlement review and shall be objective, impartial and completed within the time frame agreed upon by the contract.
The preliminary review of the construction consulting firm shall be delivered in writing to both the lender and the contractor. Abductor and a contractor shall receive feedback from consent or modification within 15 days of receipt. The late lack of feedback was seen as endorsed.
After the completion of the completion of the construction review, the licensor shall pay the engineering settlement within the specified period without delay.
The contractor shall give priority to the payment of the worker's wages after obtaining the construction rate and the completion of the work settlement price.
Article 19 was controversial in the completion of the work settlement and was resolved by both the contractor and the lender in consultation on the basis of the price and the relevant provisions. There is no consultation that may apply for conciliation by the construction price administration at the engineering location or, in accordance with the contractual agreement, to arbitration or to the People's Court by law.
Article 20 must be subject to tendering by law, and the completion of the settlement document is reviewed by the contractor's engineering price management body within 10 days of confirmation by both the contractor and the contractor. The review request shall submit the following information:
(i) A construction licence;
(ii) Engineering settlement documents;
(iii) Accreditation of generators and contractors;
(iv) The payment of the engineering price;
(v) Other submissions.
Article 21, the engineering price management, within 5 days of receipt of the completion of the work settlement document, conducts a desk review of the completed settlement document in accordance with the provisions of this approach and the construction of construction contracts that have been submitted. Key elements of the review:
(i) Implementation of the construction clause in the construction contract;
(ii) Whether the completion of the work settlement is prepared and reviewed in accordance with the contract agreement;
(iii) The qualifications and qualifications of the unit and the personnel;
(iv) Revenue of the fees provided by the State.
The review of the completed settlement document is in accordance with the relevant provisions and the completion of the settlement document is available; the completion of the work settlement documents incompatible with the relevant provisions are reproduced by the parties within the specified period.
Article 2
Article 23. The completion of the work settlement document is based on the payment and completion of the works' accounts as a result of the confirmation and signing of the documents by the licensor, the contractor.
Pursuant to the law, the completion of the solicitation work settlement documents must be carried out, with the confirmation, signing and review of the request by the lender, the contractor's parties, on the basis of the payment and completion of the contract price.
Article 24
Article 25 The construction consulting firm shall carry out advisory services under the law, provide information and related reports to the author in a timely and accurate manner, and shall not be charged against the relevant provisions.
Article 26
Article 27 results of construction works in the province should be used to produce computer software that is consistent with the construction of the inventory value of works and the price-based basis for the scheme. Incompatibility may not be used for the construction of tenders in the province, and the engineering price management shall be responsible for the cessation or modification of their use.
Article 28, which is required by law for the construction of tenders in violation of this scheme, is not based on the current price of the State and the province, which is converted by the administrative authority responsible for the works; and rejects the correctness of fines of over 3,000 dollars. Mutual collusion, high estimating profit from unlawful interests, imposes a fine of more than 5,000 dollars for the direct responsible person; constitutes an offence and hold criminal responsibility under the law.
Article 29, in violation of the provisions of this scheme, does not provide for the payment of the works or for the settlement of the work within the prescribed time period, be corrected by the executive authority responsible for the works and fines of more than 30,000 dollars to the direct responsible person for administrative disposition.
Article 33 Purchase of the outcome document of the construction of the engineering price, in violation of the provisions of the scheme, is deliberately or wrongly caused by the major negligence of the outcome document resulting in the loss of the lender or contractor, and shall be liable under the law, to establish administrative authorities to register their malfunctional acts in the credit file and to make them public; in the event of serious circumstances, to write their qualifications or operational qualifications in accordance with the law.
Article 31 does not obtain a certificate of qualifications of the engineering establishment consulting firm, which is not validated by the results of the construction price-making process, with a fine of up to 3,000 dollars for the construction of administrative authorities.
The results of the construction of the construction of the construction price consultancy without registration as a result of the construction of the price engineers or contractors are not validated and are fined by the construction of an administrative authority of over 5,000 dollars.
Article 32, the administrative authorities and their engineering price management must exercise oversight over construction costs in accordance with the laws, regulations and related provisions. Its staff play a role in the construction of engineering price management, abuse of authority, provocative fraud, and are subject to administrative disposition by law, which constitutes a crime and hold criminal responsibility under the law.
Article 33 of this approach is implemented effective 1 January 2008.