Application of Law in the Hearing of Cases Involving Disputes over Contracts on Undertaking Construction Projects

 2018-08-25  902



  • Document NumberNo. 23 [2005] of Civil Division I of the Supreme People's Court
  • Area of Law Contract
  • Level of Authority Documents of Judicial Interpretation Nature
  • Date issued04-25-2006
  • Effective Date04-25-2006
  • Issuing Authority Supreme People's Court
  • Status Effective



Reply of the Supreme People's Court on How to Understand and Apply Article 20 of the Interpretation of the Supreme People's Court on Issues concerning the Application of Law in the Hearing of Cases Involving Disputes over Contracts on Undertaking Construction Projects
(No. 23 [2005] of Civil DivisionI of the Supreme People's Court)
Your Request for Instructions on How to Understand and Apply Article 20 of the Interpretation of the Supreme People's Court on Issues concerning the Application of Law in the Hearing of Cases Involving Disputes over Contracts on Undertaking Construction Projects (No. 154 [2005], HPC, Chongqing) has been received. Upon deliberation, the following reply is hereby made:
This Court concurs with the second kind of opinions of the judicial committee of your court, that is, the prerequisite for the application of Article 20 of the Judicial Interpretation is that the parties have agreed on that if the employer fails to reply within a prescribed time limit upon receipt of the document on settlement at completion, it shall be deemed that the employer has recognized such document on settlement at completion. The document on settlement at completion submitted by the contractor may serve as the basis for the settlement of the project payment. It cannot be simply concluded from the provisions of paragraph 3 of Article 33 of the Universal Clauses in the Format Text of Contracts on Undertaking Construction Projects as developed by the Ministry of Construction that: Both parities agree with each other on that if the employer fails to reply within a prescribed time limit upon receipt of the document on settlement at completion, it shall be deemed that the employer has recognized such document on settlement at completion submitted by the contractor; and the document on settlement at completion submitted by the contractor cannot serve as the basis for the settlement of the project payment.
Civil Division of the Supreme People's Court
April 25, 2006