Application of Law in the Hearing of Cases Involving Disputes over Contracts on Undertaking Construction Projects
2018-08-25 1586
- Document Number：No. 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 issued：04-25-2006
- Effective Date：04-25-2006
- 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
