People's Republic of China promulgated by Decree No. 527

Overseas project contracting regulations of the State Council on May 7, 2008 the 8th Executive Council, are hereby promulgated and come into force on September 1, 2008.

Prime Minister Wen Jiabao

The July 21, 2008

Foreign Engineering contract management regulations

Chapter I General provisions

First in order to regulate foreign contracted projects, and promote the healthy development of the foreign project contracting, this Ordinance is enacted.

Foreign contracted projects referred to in article II of this Ordinance, means Chinese enterprises or other units (hereinafter referred to as units) contracts for overseas construction projects (hereinafter the project) activities.

State shall encourages and supports foreign contracted projects, improve the quality and level of foreign contracted projects.

Relevant departments under the State Council to develop and improve policies and measures to promote foreign contracted projects, establish and perfect the foreign contract engineering service system and risk protection mechanism.

Fourth international contractors, shall safeguard the State interests and public interests, protect the lawful rights and interests of expatriates.

International contractors shall abide by the laws of the country or region where the project, abide by the contract, respect the local customs, pay attention to ecological environmental protection, promote local economic and social development.

Fifth commercial administrative department under the State Council is responsible for the national supervision and administration of foreign contracted projects, relevant departments of the State Council in the context of their respective responsibilities responsible for foreign contracted projects related to the management.

Construction departments under the State Council to coordinate construction enterprises to participate in overseas project contracting.

The provinces, autonomous regions and municipalities the commercial administrative department is responsible for the supervision and administration of foreign contracted projects within their respective administrative areas.

Relating to the sixth International Contractors Association, the Chamber of Commerce in accordance with the regulations for its members and foreign contracted projects related services such as information, training, formulate industry standards, its coordination and self-discipline, safeguarding fair competition and Member benefits.

Chapter II foreign contracted projects eligible

Article seventh overseas project contracting units shall in accordance with the provisions of this Ordinance, obtain qualifications for foreign contracted projects.

Article eighth eligibility criteria for foreign contracted projects, subject to the following conditions:

(A) it has legal personality, construction units shall obtain a building department or other relevant departments issued a grade or level (grade a) qualification certificate;

(B) funds in conformity with contracted projects, and professional and technical personnel, management personnel with at least 2 people in 2 years experiences of foreign contracted projects;

(C) security precautions commensurate with the contracted projects;

(D) protecting construction quality and safety rules and regulations, within the last 2 years without major engineering quality problems and larger accidents over a production safety accident;

(E) has a good business reputation, no significant violations in the last 3 years and significant illegal business records. Nineth eligibility criteria for foreign contracted projects, central management of enterprises under the Central Government and other units (hereinafter referred to as the central unit) should apply to the commercial Administrative Department of the State Council, the central unit should be located outside of the unit of provinces, autonomous regions and municipalities apply to the departments in charge of commerce; applications should submit applications and comply with the conditions specified in section eighth documentary. Or the commercial Administrative Department of the State Council of provinces, autonomous regions and municipalities the commercial administrative department shall receive applications and references within 30th of, in conjunction with the building departments to review, make a decision to approve or not to approve.

Be approved, by the acceptance of the application or the commercial Administrative Department of the State Council of province, autonomous region and municipalities the commercial administrative department issuing foreign contracting engineering qualifications; were rejected, notify the applicant in writing and state the reasons.

The provinces, autonomous regions and municipalities departments of commercial administration issued overseas project contracting qualification certificates should be submitted to the State Council departments in charge of Commerce.

Tenth commercial administrative department under the State Council and provinces, autonomous regions and municipalities in supervision and inspection of the commercial Administrative Department, found overseas project contracting units no longer meets the conditions specified in these regulations, shall order the rectification; late still does not meet conditions specified in the present regulations, foreign project contracting certificates were revoked.

Chapter III foreign project contracting activities

11th commercial administrative department under the State Council shall, jointly with relevant departments of the State Council to establish overseas project contracting risk assessment mechanisms, regular assessments relating to national and regional security situation, providing early warning information in a timely manner, guiding foreign project contracting units safety risks.

12th overseas project contracting units shall not be unfair low price contract engineering projects, collusive tendering, shall not carry out commercial bribery.

13th overseas project contracting units shall conclude a written contract with the overseas project contracting, specify the rights and obligations of both parties, and in accordance with the contract obligations.

14th overseas project contracting units shall improve the quality and management of production safety, establish, and improve and strictly implement the project quality and safety management regulations.

Overseas project contracting units of project subcontract shall be concluded with a subcontractor specialized engineering quality and safety management protocols, or subcontracting contract engineering quality and safety management responsibility, and subcontractor quality and harmonization of safety production and management.

Overseas project contracting units shall not project to qualified units do not have national requirements; the construction part of the project may be subcontracted to does not obtain safety licenses of building construction enterprises in the territory. Subcontractor shall not subcontract or subcontracting of engineering project.

Overseas project contracting units shall be expressly agreed upon in the subcontract subcontractor shall not project subcontracting or sub-contracted, and is responsible for supervision.

15th expatriate personnel engaged in overseas project contracting intermediary service organization shall obtain the license the commercial Administrative Department of the State Council, and in accordance with the commercial administrative department under the State Council to engage in overseas project contracting expatriates intermediary services.

Overseas project contracting units employing expatriates through intermediary institutions, should select legally obtained a license and lawful operation of intermediaries, not by failing to obtain a permit or with gross violations of agency recruiting expatriates.

16th overseas project contracting units shall employ expatriate labor contracts, in accordance with the contract to provide expatriates with work conditions and pay, meet employer obligations.

17th foreign project contracting units shall have a dedicated security management and personnel responsible for the protection of personal and property safety of expatriates, according to the project's specific circumstances, to protect personal and property safety of expatriate programme implementation requirements.

Overseas project contracting units shall under the project the country or regional security situation, foreign expatriates in a targeted manner for safety education and emergency training, enhance the security of expatriates awareness and ability to protect themselves.

18th overseas project contracting units shall overseas personal accident insurance scheme for expatriates.

19th foreign project contracting units shall in accordance with the State Council departments of commercial administration and Finance Department under the State Council, deposit payment of petty cash in a timely manner.

Prescribed in the preceding paragraph in reserve, units to pay for foreign contracted projects refused or unable to bear the following costs:

(A) expatriate remuneration;

(B) due to the dramatic events that occurred, and expatriates to return home or receive other emergency requirements;

(C) compensation of dispatched personnel according to law requirements.

20th International contractors and overseas project contracts with the employer after shall promptly to the Chinese Embassy in the State in which the project (Consulate) report.

Overseas project contracting units shall be subject to the Chinese Embassy in the country in which the project (Consulate) in emergency preparedness, quality, safety and expatriate protection guidance.

21st overseas project contracting units shall formulate emergency plans; when an emergency occurs overseas, should be timely, properly handled, and immediately to the Chinese Embassy in the State in which the project (Consulate) and the report of the competent authorities concerned in the Mainland.

Commercial administrative department under the State Council shall, jointly with relevant departments of the State Council, in accordance with the prevention and treatment of the principle of equal, establish and perfect the foreign engineering contract emergency early warning, prevention and response mechanisms, develop foreign project contracting emergency contingency plans.

22nd foreign project contracting units shall regularly report to the competent commercial departments of their condition of foreign contracted projects and commercial administrative department under the State Council and the provisions of the Statistics Department under the State Council and submitted to the relevant Department business statistics.

23rd commercial administrative department under the State Council shall, jointly with relevant departments of the State Council to establish overseas project contracting information collected, notification system, provides information services to overseas project contracting units for free.

Relevant departments in areas such as customs clearance of goods, personnel entry and exit, by law, overseas project contracting units with fast, convenient service.

The fourth chapter legal liability

24th article does not obtain qualifications for foreign contracted projects, unauthorized contracting foreign projects, the departments in charge of Commerce shall order rectification, between 1 million and 500,000 Yuan Yuan fines; has illegally obtained, confiscation of illegal income; the main charge fines of between 50,000 yuan and 100,000 yuan. 25th article foreign contracting engineering of units has following case one of of, by business competent sector ordered corrected, at 100,000 yuan above 200,000 yuan following of fine, on its main head at 10,000 yuan above 20,000 yuan following of fine; refused to corrected of, business competent sector can ban its in 1 years above 3 years following of term within foreign contracting new of project; caused major engineering quality problem, and occurred larger accident above production security accident or caused other serious consequences of,

Business departments may revoke the foreign contract engineering qualifications; construction units, construction department or other relevant departments can reduce their level of qualifications or revoke a certificate:

(A) the failure to establish and strictly enforce the project quality and safety management rules and regulations;

(B) no specific security management institutions and personnel responsible for the protection of personal and property safety of expatriates, or not in accordance with the specific conditions of the project to protect expatriates personal and property safety and requirements for the implementation of the programme;

(C) no external safety education and emergency training of personnel;

(D) not to develop emergency plans or emergency occurs outside, not timely and properly addressed. 26th article foreign contracting engineering of units has following case one of of, by business competent sector ordered corrected, at 150,000 yuan above 300,000 yuan following of fine, on its main head at 20,000 yuan above 50,000 yuan following of fine; refused to corrected of, business competent sector can ban its in 2 years above 5 years following of term within foreign contracting new of project; caused major engineering quality problem, and occurred larger accident above production security accident or caused other serious consequences of,

Business departments may revoke the foreign contract engineering qualifications; construction units, construction department or other relevant departments can reduce their level of qualifications or revoke a certificate:

(A) at unfair low price contract engineering projects, bid-rigging or commercial bribery;

(B) not subcontract units specialized engineering quality and safety management agreements entered into, or is not specified in the subcontract engineering quality and safety management responsibility or not subcontractor quality and harmonization of safety production and management;

(C) projects to qualified units do not have national requirements or subcontracted the construction portion of the project have not been given access to safe production license of the construction enterprises in the territory;

(D) not expressly agreed upon in the subcontracting subcontractor shall not project subcontractor or subcontractors.

Subcontractor contract of project subcontract or sub-contracted by building Department ordered corrective action, in accordance with the provisions of the preceding paragraph the amounts to subcontractors and the main charge and impose a fine cause significant quality problems, or larger incidents occurring over a production safety accident, construction department or other relevant departments can reduce their level of qualifications or revoke a certificate of qualification.

The 27th foreign project contracting units shall have any of the following circumstances, the departments in charge of Commerce shall order rectification, fine of between 50,000 yuan and 20,000 yuan; it refuses, the head of the main Department fined not more than 5000 Yuan and 10,000 Yuan:

(I) conclude contracts with the overseas project contracting, not to the Chinese Embassy in the State in which the project (Consulate) report;

(B) outside of emergencies, to the Chinese Embassy in the State in which the project was not immediately (Consulate) and report to the competent authority concerned in the Mainland;

(C) does not regularly report its foreign engineering contract to business executives, or failing to submit to the Department of business statistics. 28th article foreign contracting engineering of units through not law made license or has major violations of intermediary institutions enrollment with outside sent personnel, or not in accordance with this Ordinance provides for outside sent personnel purchase outside personal accident hurt insurance, or not according to provides save paid petty cash of, by business competent sector ordered deadline corrected, at 50,000 yuan above 100,000 yuan following of fine, on its main head at 5000 Yuan above 10,000 yuan following of fine; late not corrected of,

Business Department can prohibit its under 1 year 3 years within the period of contracting new projects.

Not to license commercial administrative department under the State Council, arbitrarily engaged in overseas project contracting expatriates of intermediary services, the commercial administrative department under the State Council shall order rectification, fines of between 100,000 yuan and 200,000 Yuan; has illegally obtained, confiscation of illegal income; the main charge fines of between 50,000 yuan and 100,000 yuan.

29th the commercial Administrative Department, construction Department and other staff of the departments concerned in the supervision and administration of foreign contracted projects in abuse of power, negligence, malpractice, constitute a crime, criminal responsibility shall be investigated according to law; does not constitute a crime, he shall be subject to punishment.

The fifth chapter supplementary articles

30th foreign contracted projects involved in the import and export of goods, technologies, personnel matters such as immigration, customs, taxation and foreign exchange, in accordance with relevant laws, administrative regulations and the relevant national regulations.

Units of the 31st international contractors to tenders, bidding methods involved in the quotation amount in the State departments of commercial administration and Finance Department and other relevant departments under the State Council more than standard projects, its bank guarantee issue and other matters, in accordance with the competent Business Department and Finance Department and other relevant departments of the State Council regulations.

Units of the 32nd International contractors contract specific project, or in the commercial Administrative Department of the State Council in conjunction with the Ministry of Foreign Affairs and other relevant departments to determine the specific State or area construction projects should be approved by the commercial Administrative Department of the State Council in conjunction with the relevant departments of the State Council.

33rd units in mainland China in Hong Kong S.A.R., and Macau S.A.R. and Taiwan contracted engineering projects, reference to the provisions of this Ordinance.

34th project implementation and management of external assistance of the Chinese Government, in accordance with the relevant provisions of the State. 35th article of the regulations come into force on September 1, 2008.