Notice of the Ministry of Finance, Housing and Urban-Rural Development on Improving the Measures for Settlement of Construction Project Prices, Caijian [2022] No. 183 Relevant departments of the Party Central Committee, all ministries and commissions of the State Council, all dir

Ministry of Finance, Ministry of Housing and Urban-Rural Development
Notice on Improving the Measures for Settlement of Construction Project Prices

Finance Construction [2022] No. 183

Relevant departments of the Party Central Committee, ministries and commissions of the State Council, all directly affiliated agencies, the General Office of the Standing Committee of the National People's Congress, National Committee of the Chinese People's Political Consultative Conference General Office , Supreme People's Court , Supreme People's Procuratorate , central committees of all democratic parties, relevant people's organizations, enterprises managed by the central government, finance departments (bureaus), and housing and urban-rural development departments of all provinces, autonomous regions, municipalities directly under the Central Government, and cities under separate state planning. (Committee, Management Committee, Bureau), Finance Bureau and Housing and Urban-Rural Development Bureau of Xinjiang Production and Construction Corps:

In order to further improve the relevant methods for settlement of construction project prices, maintain the order of the construction market, reduce the burden on construction enterprises, and protect the rights and interests of migrant workers, according to " Basic Construction Financial Rules " (Ministry of Finance Order No. 81), " Construction Project Price Settlement Interim Measures " (Financial Construction [2004] No. 369) and other relevant regulations, the relevant work is hereby notified as follows:

1. Increase the proportion of progress payments for construction projects. Government agencies, institutions, and state-owned enterprises should pay no less than 80% of the completed project price for construction projects ; at the same time, ensure that the overall project budget (budget) is not exceeded and the project final (settlement) work is smooth. Under the premise of implementation, in addition to retaining a quality deposit of no more than 3% of the total project price as stipulated in the contract, the proportion of progress payment payment can be determined by both parties based on the actual situation of the project. During the settlement process, if the payment of progress payment exceeds the actual price of the completed project, the contracting unit shall return the excess project progress payment to the contract-issuing unit within 30 days after settlement according to regulations.

2. Newly started projects that are started in the same year but cannot be completed in the same year can implement process settlement. The contracting parties agree through the contract that the construction process will be divided into construction cycles according to time or progress nodes, and the price will be calculated, confirmed and paid for the completed and undisputed project quantities (including changes, visas, claims, etc.) within the cycle. The payment amount shall not be Exceeds the approved estimate (budget) corresponding to the completed part. The process settlement documents confirmed by both parties shall be part of the completion settlement documents, and in principle they will not be reviewed again after completion.

3. This notice will come into effect on August 1, 2022. Project contracts signed from this date shall be executed in accordance with this notice. In addition to the matters specified in this notice, other relevant matters will continue to be implemented in accordance with the "Interim Measures for Settlement of Construction Project Prices" (Cai Jian [2004] No. 369).

Ministry of Finance of the People's Republic of China

Ministry of Housing and Urban-Rural Development of the People's Republic of China

June 14, 2022

Information disclosure options: proactive disclosure

General Office of the Ministry of Finance Issued on June 20, 2022