Engineering law, risk like a hungry tiger! How many projects will be completed and Party A ” to Bogong Hall “?

As the saying goes, “the bottom of the family can not afford to toss”, once the loss, the enterprise “cannot afford” also “cannot bear”, the construction enterprise’s profits are getting thinner and thinner  Coupled with the national governance norms of the construction market order, enterprises in the operation of the growing risks, there are from the market itself, there are policy levels, there are management aspects, and these risks will eventually be in the form of legal risks, – there is no way to detect these laws in advance   Risk, how to do a good job of risk control?

Today we’ll sort out the legal risk questions that will exist in the course of our project and answer the following 6 questions for you:

1, how to put an end to the credit problems arising from Party A enterprises?

2. How to deal with the risk of claiming delay due to schedule?

3, encountered the project was forced to stop work, how to do?

4, the project because of quality problems were deducted, how to deal with?

5, how to prevent the occurrence of security risks?

6, the contract agreed to “fixed comprehensive unit price”, but due to the rise in material costs, construction units can not afford how to deal with it?

01

Owner credit is an important factor in project risk assessment

The following project case because the construction unit on the owner’s credit inspection is insufficient, blindly signed the construction contract, resulting in the later owners in various forms of arrears of the risk of project payments.

The root cause of the analysis is that the construction unit on the owner’s credit, property, and all aspects of the strength of the lack of understanding, in the project rush stage of the capital chain problems, can not stop work in time lead to more and more heavy losses.

1, from the understanding of the owner’s credit point of view, we have to do at least the following 9 points of information collection work:

At the same time, if we find that there is a problem with the owner’s credit, or the strength is not enough, how to protect the rights and interests?

2, must be through the filling form, require the owner to provide adequate guarantees, increase credit, there are the following points can be referenced:

• companies in the country provide adequate guarantees
• of the assessed value of the asset and must confirm that the local mortgage registration process can be processed).

02

How can I avoid the risk of delays?

Duration risk is encountered in many projects, including subjective reasons of the construction party itself, as well as party A/designer and many other objective reasons, such as design changes, supply materials, material sample confirmation speed, and so on.

The construction unit in the following case should have been completed by May  31,  2016 (the supplement should have been completed by  July 31) and is now significantly overdue.  And in the course of the review, the project department’s duration information did not have, which is equivalent to the basic absence of counterclaim undercard.

But often the construction unit to do the duration of the extension of visa, Party A is very cautious, for a variety of reasons Party A will also have not signed, simply avoid ignoring. In this case, how can the term visa be made logical?

1, a valid extension visa can directly avoid the risk of duration

An extension proposed by the contract for the duration of the contract based on the reasons for the extension agreed upon in the contract (the conditions under which the contract may be extended);

Make a clear and specific request for an extension, and Party A authorized personnel to confirm the extension request.

2, clever use of the default terms, so that Party A attaches importance to this, or logically complete the extension of the visa

For example, because of the undecided reasons for Party A’s design, affecting the duration, the construction unit explicitly requested the duration to be extended to xxx days and to apply for a visa. To avoid the submission of the visa form to go up to the “stone sinking sea”, you can add a sentence later: “This project extension requirements, within 15 days party A does not reply to the defaulting Party A consent to the extension of the schedule.”

3, constitute the evidence chain of the duration visa (fixed duration extension reasons, construction progress map).

When the construction progress plan is prepared, the construction prerequisites are prepared into the inside: drawings issued, civil construction and installation with the unit completion time;

The schedule states that “the overall duration is delayed as the above nodes do not complete on schedule”.

03

What if the project is forced to stop?

This project case because of the failure to stop work in time and the completion of high output value, forced to accept the advance construction requirements, and ultimately ride the tiger difficult.

Project disorderly shutdown or because of the project for special reasons advance construction, the risk is often huge, in this case, we should pay attention to the following 3 points:

1, evidence of valid fixed project arrears

Validly confirm the monthly report of the project volume, because the stop-off project does not exist settlement, so in the process will be effective project volume to determine.

2, timely processing of collection and work stoppage procedures

Application for stoppage exists formalities process, the construction party to issue a timely contact form, at the same time because Party A requested a stop work, or for financial reasons, is also the basis of our late claim;

3, advance the effective guarantee and capital cost

Some projects because of Party A reasons, or other special reasons, we need advance funds for construction, so there must be a party A to provide an effective guarantee.

04

Project because of quality issues were deducted, how to deal with?

The project is claimed or withheld due to quality risk, which is a difficult problem to deal with during the construction of the project or the completion audit phase.

In this case, Party A paid part of the project but refused to go through the acceptance procedure because of the quality problem.  And the construction unit in advance litigation to pay 16.24 million yuan compensation, and the court finally judged that the construction unit to pay compensation of 16.24 million yuan.

Quality is qualified, is the basis and basis of our claim for the project. Therefore, to avoid the owner’s quality “unreasonable claims, or delay in completion acceptance” phenomenon, construction units should pay attention to take these measures:

1, understand familiar with the contract agreed quality standards: qualified, the owner of the internal quality standards (need to obtain written quality standards).

2, effectively handle the material inspection and sample confirmation, especially the A supply material or A-finger material, more can not be ignored, the non-conforming materials to take decisive measures.

3, to do good things before, during, and after the quality control.

Before the formal construction, the basic contents of preparation include: construction technical preparation, construction material preparation, construction organization preparation, site preparation;

Quality control in the matter, specific measures are: quality control has countermeasures, construction projects have a program, technical assurance has the bottom, drawings will be audited and recorded, preparation materials have tests, covert projects have acceptance, design changes have procedures, finished product protection measures, quality documents have files;

After the quality control, ready to complete the acceptance information, according to the prescribed quality assessment standards, the completed sub-projects, divisional projects, unit projects for quality assessment.

4, timely processing of completion acceptance follow-up and delivery procedures, timely declaration, and effectively signing the completion report, fixed down the completion of the project facts. At the same time, the process of quality inspection qualified forms, process meeting minutes, quality rectification contact list, etc., in the audit process, or the later litigation process can be used as a quality of qualified favorable evidence

05

How can I prevent security risks from occurring?

The following case because the site security facilities are not perfect, resulting in casualties, how to pre-control.

How to prevent risks ahead of time:

1, the formulation of safety construction programs, based on the identification and evaluation of safety hazards, the preparation of construction organization design and construction programs; the formulation of safety technical measures and temporary electricity use of construction sites; the preparation of special safety construction programs for projects with larger risks.

2, full safety technology, project leader, a technical person in charge, and full-time security personnel shall be responsible for safety technical measures and special programs by the division of labor, process supervision, acceptance, inspection, improvement, and other work content;

3, the technical bottom should comply with the following provisions:

Before the unit project starts, the technical person in charge of the project department must make a safe technical transition to the relevant personnel;

Before the construction of the complex sub-project, the safety (technical) person in charge of the project department shall carry out the safety technical bottoming.

06

How should construction units respond to rising material prices?

The price of materials has increased, the company has signed a fixed-price contract with Party A, which is not adjusted because the contract is a fixed-price contract.

This problem mainly depends on the previous owner’s contract is how to agree, since it is a fixed price contract. There are generally two situations in the contract:

1, the market price of more than 5% or more on the prescribed adjustment;

2. Prices are not allowed to be adjusted under any circumstances.

If you encounter no matter what the situation, the price is not allowed to adjust the situation, there are several ways to try:

1, timely report to the owner of the market situation, the best can jointly inquire for approval, ask the owner to give reasonable compensation, in general, if the increase is too large, the owner will generally agree, but some Party A is to bite the contract, determined not to adjust the price, then how to do?

2, under the premise that the quality of the project is qualified: go to court to file a lawsuit, in the current situation, the possibility of success is very large.

Construction projects after completion acceptance into the completion settlement stage, therefore, completion settlement is often referred to as the last link in project management.

However, the problems exposed by the completion settlement usually do not only involve the management of the complete settlement, but also occur in the three stages of the bidding contract signing phase, the contract performance stage, and the complete settlement stage.  In this sense, the completion of settlement management is not only the last link, but a systematic project, many construction enterprises need to explore the whole process of risk control, strengthen pre-control.